Re: [OPE-L] models with unequal turnover periods

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sat Sep 08 2007 - 16:45:40 EDT

Gerrys point in his last message is relevant - are you aiming for realism in
uncovering laws of motion, or extension of a historical text.

If you want realism you have to go either for an actor based model with
discrete time steps, or a continuous time model with differential equations.
But in either case you have to model actual transactions or transaction rates
and you have to derive the formation of a uniform rate of profit as the outcome
of the adjustment procedures and transactions engaged in by the agents in your
model. In your case since it is two dept, you can probably cut down the number
of agents to 4

1. The industrial capital in sector 1
2. The industrial capital in sector 2
3. The working class as a whole
4. The the rentier class or capitalists in the role as consumers.

Each of these agents will require equations to specify their rates of expenditure
on outputs of each industry. Agents 1 and 2 will also require equations to specify
their rates of employment of labour power.
Agent 3 will have to have equations specifying the labour actually delivered in return
for wages.

Paul Cockshott

-----Original Message-----
From: OPE-L on behalf of Paul Zarembka
Sent: Sat 9/8/2007 1:41 AM
Subject: Re: [OPE-L] models with unequal turnover periods
Regarding turnover, I'm working on a two-department model with the annual
flow of circulating constant capital costs an unchanging fraction f of
fixed capital and turnover of circulating constant capital costs at n
times annually for both departments.  I'm trying to incorporate fixed
capital into Marx's reproduction schemes (remember my raising that issue a
month or so ago?).  Depreciation will be included but I haven't gotten to
exactly how.

Any comments or suggestions? I want enough realism to be interesting but
not so much as to be greatly complicated. Paul Z.

(Vol.23) The HIDDEN HISTORY of 9-11-2001   "a benchmark in 9/11 research"
          Research in Political Economy, P.Zarembka, ed, Elsevier hardback

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