[OPE-L:4551] Re: Duncan's vintages

Michael Perelma (michael@ecst.csuchico.edu)
Wed, 26 Mar 1997 15:04:01 -0800 (PST)

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I am having some trouble with this system. I may have sent an earlier
message. If a single firm rather than a branch has the productivity
doubled, then the question is difficult. I have never seen a
satisfactory analysis of value with a hetergenous group of firms.

If the entire branch enjoys doubled productivity, then the answer is
easy: the value is the same.

Alan Freeman wrote:
> I think Michael's posts [4532, 4542] let us approach the
> issue in a very direct manner which gets right to the heart
> of the problem.
> Let me ask this question. Suppose in February, the
> workers in a given branch of production make twice as
> many goods as in January, having worked the same number
> of hours in each month. Suppose this results from changes in
> technology which, for the sake of simplicity, we will assume
> have not changed the cost structure of the firm (that is, the
> organic composition does not change).
> So the workers, to put it simply, make twice as many things
> in the same time, for the same money.
> Has the value they add to the (aggregate) product doubled?
> Alan

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu