Re: [OPE] webpage computing and the sperm rate of profit

From: Dave Zachariah <>
Date: Sat May 16 2009 - 06:48:47 EDT

Jurriaan Bendien wrote:

> In science, the onus is on the researcher to provide sufficient
> documentation on data, sources, methods, concepts and assumptions, and
> just saying something like "well I used the Penn tables" will not do
> the trick. Without appropriate documentation, the exercise cannot be
> distinguished from a scam.
Jurriaan, are you aware that the webpage is based on material that *has
not been published yet*? It will be published in the book "Classical
and as an article in Bulletin of Political Economy in June I believe. I
can send you the article if you wish.

> I cannot find any formula for the rate of profit as inferred from
> population and labour force data, nor can I find any information about
> what is included and excluded in the empirical variables used.
> Is the profit rate shown in the graphs the derived equilibrium profit
> rate r_eq = ( gL + gP + d) / i ?

Yes, Tamerlan used that equation.

> The gL and gP variables can be obtained with reasonable accuracy, but
> as regards the d and i variables, there can be a large margin of
> empirical error and I am not even sure how they are calculated.
> There's a lot to be said about that, but anyway there is no necessary
> relationship between the depreciation rate and the reinvestment rate,
> and it is the actual money depreciation rate which is decisive and not
> the imputed economic depreciation rate.
> In the i variable, the non-productive component, which is large and
> increases faster, should be excluded. I think the formulas ought to be
> modified, to build in various other influences, such as the ratio of
> distributed and undistributed profit, the interest rate and the
> currency exchange rate. How do we know that gL, gP and d have equal
> weightings?

Yes, I'm sure there are many ways to improve the model. But one
advantage is its simplicity. Moreover, the profits considered here are
before division into taxes, dividends, interest and retained profits.

I'm not sure about your question though. The 'equal weights' of gL, gP
and d follow from the derivation of the equilibrium rate.

//Dave Z
ope mailing list
Received on Sat May 16 06:50:38 2009

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