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

From: Ian Hunt (ian.hunt@FLINDERS.EDU.AU)
Date: Sun Sep 16 2007 - 05:48:17 EDT

Dear Fred,
I should also have mentioned that you can divide the value of the
capital by the turnover period. The capital stock matrix before
multiplication by the price per unit vale vector is in value terms.
So the dimension of capital stocks that are subject to accounting
conventions is money while that in the capital stock matrix in my
model is value. Just as you divide the capital stock fund by turnover
period to get capital flows in money per year, so you can divide the
capital stocks in value terms by the turnover to get constant capital
flows of value per year,


>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.
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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

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