Re: [OPE-L] equilibrium and simultaneous vs. sequential determination

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sat Sep 08 2007 - 10:07:11 EDT

Quoting ajit sinha <sinha_a99@YAHOO.COM>:

> --- Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote:
>> Ajit, Ricardo and Torrens dealt with unequal ratios
>> of fixed capital
>> and circulating capital across industries.  They did
>> not deal with
>> unequal turnover perods of circulating capital
>> across industries, which
>> is what I am talking about.  I argue that Sraffa's
>> theory requires
>> equal turnover periods of circulating capital across
>> industries for
>> reasons given in my last message.  If anyone in the
>> Sraffian literature
>> has explicitly incorporated unequal turnover period
>> of circulating
>> capital across industries, please give the
>> references.  Thanks.
>> Fred
> ________________________
> "It is also to be observed that the circulating
> capital may circulate, or be returned to its employer,
> in very unequal times. The wheat bought by a farmer to
> sow is comparatively a fixed capital to the wheat
> purchased by a baker to make into loaves. One leaves
> it in the ground, and can obtain no return for a year;
> the other can get it ground into flour, sell it as
> bread to his customers, and have his capital free to
> renew the same, or commence any other employment in a
> week." (Ricardo, WORKS, I, p. 31)

OK, Ricardo was aware of unequal turnover periods of circulating
capital across industries.  But he did not deal with this issue in the
pages that follow.  Instead, his machines-corn-cloth model assumes that
all these industries have the same turnover period  one year.

And more to the point: Sraffa does not take into account differences in
the turnover periods across industries in his theory, not has any other
Sraffian to my knowledge.  If I am mistaken, please give references.


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