[OPE-L:1992] Re: depreciation, profits, and subjectivity

Steve.Keen@unsw.EDU.AU (Steve.Keen@unsw.EDU.AU)
Sat, 27 Apr 1996 01:35:15 -0700

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Since I'm about to dive in at the deep end (on Jerry's invite!), I
will comment on this exchange on subjectivity that despite Mike P's
concession to Gil that:
Of course, the owner's subjective assessment does not determine the value,
but neither does the market -- at least until the capital goods or the
business are placed on the market for sale.
Marx can be shown to support the notion that the owner's subjective
assessment of a capital item DOES determine its value. Again I can't
provide the exact cite from home, but in discussing Ricardo's attempt
to determine the value of the minerals "in situ" in an undeveloped mine,
Marx concludes his critique with:
"or does value mean here, as it must do, the possible use-value and
hence prospective exchange-value of the minerals?"

That's the language of subjective valuation; though its application
is strictly limited to capital assets.

Steve Keen