On Fri, 13 Oct 1995, Paul Cockshott wrote:
> In discussing the relative stability of the wage share,
> the fact that it stays to within an order of magnitude of
> 50%, rather than falling to 1 0r rising to 99%, one
> might perhaps look at the sort of stochastic mechanism
> that is invoked by biologists to explain the stability
> of the sex ratio in most species at around 50%.
Dumenil and Levy have a paper in the latest issue of Metroeconomica that
begins to build this type of model. They put more emphasis on the
stochastic evolution of technology, but inherent in their approach is a
wage theory, too. I find this stochastic type of model very natural to
approach long-run tendencies.
> This is just brainstorming, so dont pay excessive attention.
> In general I feel that we need to look a lot more closely
> at stochastic effects not only here, but also in explaining
> why the law of value appears to operate as a law.