[OPE-L:838] Re: Valuation Of Inputs

Duncan K Foley (dkf2@columbia.edu)
Tue, 23 Jan 1996 15:29:11 -0800

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Gerry's message points up the difficulty that in order to answer the very
relevant questions he poses, one needs a theory of behavior and markets
out of steady-state equilibrium. For example, you need a theory of
expectations, of the information transfer between capitalists, and so on.

There are many plausible theories of this kind, none of which seems to
dominate the others on grounds of common-sense or scientific relevance. I
guess you can use accounting definitions, like the circuit of capital, to
figure out what must happen ex post, but that may not tell you much about
how it actually happens.