[OPE-L:2852] Re: Value of LP // Real Wage

Duncan K Foley (dkf2@columbia.edu)
Mon, 26 Aug 1996 12:14:40 -0700 (PDT)

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On Mon, 26 Aug 1996, John Ernst wrote:
(in part)
> 1. If rising real wages cause capitalists to introduce
> labor-saving and capital-using technologies, will
> falling real wages give them cause to switch back
> to the old techniques? Are there examples of this?

I think this is an extremely important question. It is at the heart of the
debate over the neoclassical production function vs a Cambridge
fixed-coefficients approach with technical change, since the neoclassicals
presumably believe that falling real wages would take one back along the
isoquant, whereas the Cambridge view would disagree.