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

From: Ian Hunt (ian.hunt@FLINDERS.EDU.AU)
Date: Sat Sep 15 2007 - 21:38:55 EDT

Dear Fred,
In the model, the fixed capital flow input is a quantity of value per
year, with a price per unit of value for the machine. In money
accounting terms, it is the depreciation of the item of fixed capital
per year. Empirically, the turnover period is determined by
accounting convention, together with expectations of profitable
working the lifetime of the machine.

Once the turnover period is found you can determine capital flows by
dividing the capital stock by the turnover period. The dimension of
capital stocks is money. So you divide the capital fund required for
the machine, ie its capital cost in money terms, by the turnover
period (whose dimension is time) to get the fixed capital flow (whose
dimension is money/time).

In my model, the capital is measured in value units and prices as
prices per unit of value. You could also measure the capital in other
units, and take prices per those units. Measurement in value units
reveals the division of socially necessary labour time involved in
the productive consumption of inputs. If you think the reciprocal
interaction between money price and labour productivity (defined as
the inverse of 'value') is important theoretically, then your theory
will take value units as significant. if you have other theoretical
interests, you will not doubt take other measures as the basis of
your model,

>Quoting Ian Hunt <ian.hunt@FLINDERS.EDU.AU>:
>>Dear Fred,
>>The system that is explicitly based on Brody is in the footnotes.
>>With one slip fixed up, it is:
>>p (C + vl + Kr) = p,
>>where C is the matrix of constant capital inputs (cij) , ie the
>>matrix of inputs j into the production of i per year, v is the wage
>>bundle per hour, l is the vector of labour inputs li into the
>>production of i per year, and K is the matrix of capital stocks cij .
>>tij + vli . ti , where tij is the turnover period of the capital
>>input j into the production of i and ti  is the turnover period of
>>the variable capital input in the production of i. The turnover
>>periods are the capital stock inputs divided by the capital flow
>>inputs. I hope this is clear enough,
>Hi Ian, thanks for the clarification.
>If the capital stock input is a machine, what is the capital flow input?
>How do you divide the machine by the capital flow inputs to obtain the
>turnover period?
>Thanks again.
>This message was sent using IMP, the Internet Messaging Program.

Associate Professor Ian Hunt,
Dept  of Philosophy, School of Humanities,
Director, Centre for Applied Philosophy,
Flinders University of SA,
Humanities Building,
Bedford Park, SA, 5042,
Ph: (08) 8201 2054 Fax: (08) 8201 2784

This archive was generated by hypermail 2.1.5 : Sun Sep 30 2007 - 00:00:05 EDT