[OPE-L:2870] Re: Value of LP // Real Wage

Stephen Cullenberg (Stephen.Cullenberg@ucr.edu)
Mon, 26 Aug 1996 17:25:18 -0700 (PDT)

[ show plain text ]

I guess I'm lost here. The Cambridge debate was about the relationship
between certain aggregate measures of capital and their respective
distributional variables. Why wouldn't relative "factor prices" affect the
choice of technique on a disaggregated level?

Steve Cullenberg

>A useful outcome of the cambridge debate was that because of the
>possibilities of reswitching and reverse capital deepening, it is logically
>impossible to establish a positive monotonic function such that K/L =
>f(w/r). Doesn't this alert us to look elsewhere regarding the incentives for
>technical change?
>peace, pat mason

Stephen Cullenberg office: (909) 787-5037, ext. 1573
Department of Economics fax: (909) 787-5685
University of California Stephen.Cullenberg@ucr.edu
Riverside, CA 92521