Re: (OPE-L) Re: Dynamic value and natural price

From: paul cockshott (clyder@GN.APC.ORG)
Date: Tue Nov 11 2003 - 05:39:07 EST

> To measure it we need to do a least squares fit to price data:
> minimize with respect to x the square of  (y - Mx)
> where x is a vector of hourly natural real wage rates, y is a vector
> of recognized labor activity, measured by money, expressed in hours.
> In other words y is equal to a vector of firms' absolute value added
> (nominal value added in dollars times the absolute value of money).
> M is a matrix.  The element M(f,t) gives the hours worked in firm f
> by workers of skill type t.  We need to have the number of firms much
> greater than the number of skill types to get a good fit.
> The dimensions of y and M are hours.  x is dimensionless -- wages
> measured in money hours divided by clock hours.
> -------------------------------------------------
> Whatdo you expect these xs to be, >1 or <1?


I would expect them to be dispersed around a mean of 1, but I have not tried
prove that yet.

That would surprise me since wages on make up part of the value added.
If you did get a mean of 1, you would now have a measure of exploitation
by comparing your 'natural real wages' with the wages actually paid.

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