[OPE-L:3634] RE: Laibman on the output ratio and the occ

andrew kliman (Andrew_Kliman@msn.com)
Fri, 8 Nov 1996 09:36:47 -0800 (PST)

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Paul C (ope-l 3628):
"The problem with the concept of the technical composition of capital is that
it is incapable of precise definition, since it aggregates dissimilar use
values. It is in effect the same concept as Laibmans physical capital to
output ratio, and suffers from the same ambiguities."

This is exactly why Marx introduced the organic composition of capital, which
is a constant-value measure of C/V. When values are held constant, any change
in C/V is a change in the TCC. The OCC is no more ambiguous than any other
constant-price measure, and the quasi-physical entity it is measuring, the
TCC, is no less capable of being defined precisely than is any other "real"
variable such as real GDP, real wages, real interest rates, etc.

Andrew Kliman