[OPE-L:7273] [OPE-L:801] Marx's concept of price of production

Andrew Kliman (Andrew_Kliman@email.msn.com)
Tue, 30 Mar 1999 09:47:01 -0500

In OPE-L 748, I noted that

"in a paper presented at the panel Fred mentions, Alan Freeman
*demonstrated* that simultaneously determined "prices of production"
CANNOT function as long-run centers of gravitation. He also
*demonstrated* that temporally determined production prices DO
function as long-run centers of gravitation. Since -- as Fred
himself admits here -- Marx's prices of production are centers of
gravitation, they are thus temporally determined, not simultaneously
determined. End of story.

"What is your response to this, Fred? It seems to me that you must
do one of the following:

(a) find an error in the demonstration
(b) renounce Marx in favor of simultaneous determination
(c) renounce simultaneous determination in favor of Marx

It doesn't seem to me that continuing to avoid the matter solves

Fred has responded:

I cannot find this "demonstration" in Alan's paper. Would Andrew
(or Alan) please give me the page numbers?

The demonstration is on pp. 13-15 of his paper, as printed in the
conference volume. The graphs on p. 16 also pertain to it.

Alan uses the term "Sraffian prices." Before responding to other
aspects of your post, I'll wait to hear whether or not you replicate
his simulation results when you use "macro-monetary" prices instead
of "Sraffian" prices. (I'll also give you time, of course, to check
out whether you replicate his results in the case of temporally
determined prices.)