[OPE-L:1241] Re: determination of constant capital

akliman@acl.nyit.edu (akliman@acl.nyit.edu)
Tue, 27 Feb 1996 11:59:30 -0800

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A brief response to Allin's ope-l 1203:

(1) If the physical coefficients remain the same throughout all time,
then yes, the temporal value magnitudes (and profit rate) converge to
the simultaneist magnitudes. Strictly speaking, this takes forever.
More importantly, if the physical coefficients (technology, etc.) do
change over time, then we get entirely different sets of results.
I have no objection to "equilibrium" modeling if either (a) one is
clear that the results apply only to a special case with no general
theoretical significance (i.e., simultaneous values are then a peculiar
special case of temporal values) or (b) there is some "law" that
dictates that convergence tends to take place because the forces
producing convergence act more rapidly than those perturbating the
system away from convergence. Given that we're talking here about
technical change, etc., not establishment of equal-profit-rate prices
or anything, the latter strikes me as absurd.

(2) On the concept of surplus product. According to Marx's concept of
surplus product, there is not a 20 qtr. surplus product in my example,
even though the yield was 100 qtrs. and outlays were 80 qtrs. At the
end of either Ch. 9 or Ch. 11 (I forget), he discusses surplus product
and how to calculate it. According to his concept, the surplus product
(though measured in corn) is zero.

Andrew Kliman