[OPE-L:3349] Re: TSS and Tech Change

John Ernst (ernst@usa.pipeline.com)
Fri, 11 Oct 1996 01:21:51 -0700 (PDT)

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I think our difference on this may be definitional. Here is our
"dialog" followed by my response.

On Oct 11, 1996 01:06:10, 'Paul Cockshott <wpc@cs.strath.ac.uk>' wrote:

>> John:
>>3. TSS opens up the possibility that you can have capital
>>augmenting technical change (see above) and a FRP. Using
>>other approaches to the concept of value, this is impossible.
>This is not the case at all.
>The method of determining values by recursive application of current
>production functions has nothing to do with the possibility or
>of a rising organic composition of capital. The latter is ensured whenever
>rate of accumulation exceeds the rate of growth of the labour force. A
>in organic composition implies, perforce, a technical change in
>Paul Cockshott


When the constant capital to ouput ratio decreases, we have "capital
augumenting" technical change. As far as I know and, clearly, within the

context of the one-commodity model we've been discussing, this translates
into an FRP under the TSS of valuation. If one equates input prices and
outprices and then computes a rate of profit using those prices, that rate
of profit does not fall given capital augmenting technical change.