[OPE-L:2964] Re: In Search of (E)

andrew kliman (Andrew_Kliman@msn.com)
Wed, 4 Sep 1996 13:45:18 -0700 (PDT)

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A reply to Allin's ope-l 2961.

Sorry for the confusion. I still haven't gotten the hang of how to carry on a
two-person dialog "in public."

The examples I was referring to, and I hope Gil was as well, are one-sector
examples in which I refute the Okishio theorem. Since I have only one sector,
I have no relative prices, and therefore "I have no variation in relative
prices over time."

The example Allin refers to is an example that refutes Bortkiewicz's "proof"
of logical inconsistency in Marx's account of the transformation of values
into production prices. This does display variations in relative prices over
time. If one wants to call the prices of production of this example
equilibrium prices, because profit rates are equalized, it is fine by me. If
one doesn't want to call these prices of production equilibrium prices, either
because relative prices vary over time or for some other reason (e.g., unequal
luxury consumption per unit of capital advanced), that is also fine by me.

Of the relative prices that Allin reports, only those of 1st and 2nd period
are Ted's and mine. As I've noted to Allin---and others---before, we have no
algorithm by which to generate any value or physical magnitudes for any
subsequent periods.

Andrew Kliman