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

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Mon Sep 17 2007 - 21:44:56 EDT

Quoting Ian Hunt <ian.hunt@FLINDERS.EDU.AU>:

> 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,

Hi again,

Thanks for this response as well.

I thought that the given inputs in linear production theory were
PHYSICAL quantities of inputs and outputs, not the VALUES of these
physical quantities.  How are these values determined?  This is very
different from Sraffa.
Is this what Brody does?


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