[OPE-L:5151] Re: Used Cars

Michael_A._Lebowitz (mlebowit@sfu.ca)
Fri, 30 May 1997 17:44:13 -0700 (PDT)

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In message Fri, 30 May 1997 13:44:49 -0700 (PDT),
"andrew kliman" <Andrew_Kliman@msn.com> writes:

> In ope-l 5149, Jerry wrote:
> "How does the period of circulation time enter into TSS equations? Is it
> instantaneous (by assumption) or can the equations be modified to allow
> for a variable circulation time?"
> I don't know others' interpretations, but I interpret the fundamental
> equations (of value determination, price determination, and profit rate
> determination) that cover the time-span between input and output, as
> covering the time of production, i.e., the phase C ... P ... C' of the
> circuit of capital. In other words, when one speaks of the value
> advanced for inputs, one speaks of C; when one speaks of the value or
> price of outputs, one speaks of C'. Under this interpretation, these
> equations are applicable directly, i.e., without modification, to
> circulation times of any duration.
> To formalize relations of reproduction when circulation time is variable,
> one needs only to do the following. If a commodity emerging at time t
> is not used immediately as an input, but only after a period of
> circulation (and generally storage as well) of length k, the relevant
> input price is Pt+k instead of Pt.
> Andrew Kliman

Effectively, the standard (implicit) assumption is that circulation
time=0, with the result that the number of turnovers (which is critical in
determining the annual surplus value (and, thus, rate of profit) reflects
only the time of production, and capital tied up in the sphere of
circulation thereby is similarly assumed =0. In principle, it wouldn't seem
to be a problem modifying these equations. Eg., surplus value would be
lowered with time of circulation (tc)>0 by the factor,tp/(tp+tc); and,
capital advanced (C+V) increased by the factor, 1+tc/tp. Would you agree,
Andrew? Any other changes? Also, is the TSS (or your) assumption that the
time of production is a year?

mike lebowitz

PS. I'm heading off tomorrow morning to Newfoundland for a conference, etc
and will be gone for about 2 weeks so I apologise in advance for any delays
in reponding to messages.
Michael A. Lebowitz
Economics Department, Simon Fraser University
Burnaby, B.C. Canada V5A 1S6
Office (604) 291-4669; Office fax: (604) 291-5944
Home: (604) 872-0494; Home fax (with warning): (604) 872-0485
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