Re: basic sectors 1or more

From: Ian Wright (ian_paul_wright@HOTMAIL.COM)
Date: Sun Sep 28 2003 - 21:14:42 EDT

>Consider 3 departments
>Ia produces means of production some of which it uses itself
>Ib produces means of production some of which it uses itself
>II is wage goods which use both Ia and Ib
>Ia and Ib however are autarchic

If Ia and Ib are autarchic then the set of basic commodities
is empty, i.e. there isn't one or more commodities required
for the production of all other commodities. Zero production
of one basic commodity implies zero production for all
commodities (basic and non-basic). In this example, zero
production of a commodity in Ia would not prevent production
of commodities in Ib (and vice-versa).

>There is now no single basic sector acting as an upper limit
>on the rate of profit. At first sight, it would seem that
>were there a uniform rate of profit, then whichever of
>the sectors Ia and Ib had the smaller eigen value would
>constrain the overall rate of profit. I am not sure about this though

In addition, a usual assumption of the physical quantities approach
is that there is always at least one basic commodity that requires
labour for its production. So, irrespective of whether your
example is a possible economic situation, it falls outside of what
is usually considered.

The answer you give: that one of the sectors, Ia or Ib, must
be a limiting factor seems right, but the analysis would need
to proceed without the concept of a set of basic commodities
(I think). There aren't 2 basic sectors here, there are none.


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