Re: [OPE-L] Truncating Marx's "Capital"

From: Ian Wright (wrighti@ACM.ORG)
Date: Mon Sep 03 2007 - 23:01:23 EDT

> Equilibrium theorizing is not the same as simultaneous determination
> theorizing.  One can have equilibrium (in the sense of equal rates of
> profit and long-run center-of-gravity prices) without simultaneous
> determination.

Are you sure this is correct Fred? All equilibria of systems of
ordinary differential equations are systems of simultaneous equations.
An equilibrium is, almost by definition, a situation where the output
state is identical to the input state; hence, the state of the system
is constant over time. So if you want to develop dynamic models then
you unavoidably have simultaneous determination in special cases.
Although equilibrium theorizing is inherently limited it nonetheless
is essentially related to non-equilibrium theorizing. This is a
problem for the TSSI injunction against simultaneous determination.

Also, regardless of the interpretative issue of whether Marx's theory
is sequential or simultaneous there now exists a post-Bortkiewicz
special case of self-replacing equilibrium in the  literature. Why
does Marx's theory of value appear to breakdown in this special case?
As far as I can tell the TSSI answer is that it is "unrealistic" to
assume inputs prices equal output prices; and in more hyperbolic
moments they claim that simultaneous determination and equilibrium
theorizing belongs to bourgeois ideology. This is a totally
unpersuasive answer to the neo-Ricardian critique. The critique must
be met on its own ground, not by refusing to accept the terms of the
debate or its scientific legitimacy.

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