[OPE-L:825] Re: Valuation Of Inputs

Duncan K Foley (dkf2@columbia.edu)
Sun, 21 Jan 1996 11:52:20 -0800

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In his reply to Jerry, John says:

> __________________________
> With all this, I hope we do not lose sight of what we dealing
> with here. That is, the issue is the "revaluation of inputs."
> The basic idea is that capitalists attempt to recover the value
> invested and not the value that it takes to reproduce the means
> of production at any given point in time.
The phrase "attempt to recover the value invested" seems to me to need
explanation. The competitive capitalist (the usual assumption in general
equilibrium type models, and also apparently in a lot of Marx) cannot do
anything to recover more value, since he has to sell at a market
determined price. If the issue has to do with the behavior of a
monopolist, being explicit about that will avoid a lot of misunderstanding.