Re: The increasing transformation problem

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Tue Jun 10 2003 - 10:23:08 EDT

Rakesh Bhandari wrote:

> What effects does variance in turnover time and the rate of surplus
> value have on value-price disparity? We seem to be considering only
> variance in capital composition.
> Yours, Rakesh

1. Turnover time. This is strictly equivalent to a change in
     capital composition. However the paper I quoted was
     based on flow rates of profit for the UK. We have
     done subsequent work, currently in press with the
     Cambridge Journal, that replicates the UK results
     for the US where better capital stock data is available.

2. Rate of surplus value. Measured sector by sector the dispersion of
    s/(s+v) for the UK showed a coefficient of variation of 0.423
   the rate of profit s/(c+v) showed a coefficient of variation of

Price of production theory would lead one to expect the coefficient
of variation of rate of profit to be narrower than those of rates of
surplus value, in fact the opposite holds.

Paul Cockshott
Dept Computing Science
University of Glasgow

0141 330 3125

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