From: Ian Wright (iwright@GMAIL.COM)
Date: Sun Sep 19 2004 - 18:09:25 EDT

From Julian Wells.

---------- Forwarded message ----------
From: Julian Wells <julianwells@gn.apc.org>
Date: Sun, 19 Sep 2004 19:39:27 +0100
Subject: Re: Fwd: [OPE-L] OPE-L:_Wage_share
To: wrighti@acm.org


My response to Paul C's points is

>Paul C
>Farjoun and Machovers proposition that
>a) the distribution of the profit share will be Gamma

I'm still working from memory (my copy of F+M is in deep storage at
the moment -- but surely their claim is that the rate of profit and
rate of wage bill will be gamma, not the profit share?

If I'm wrong, I'd be grateful for a reference.

>b) that the narrow the dispersion the closer the wage share will be to
>Is in principle testable.

I'm happy with the idea that s/v is in practice a non-degenerate
random variable tightly concentrated round 1.

>David has come up with some figures
>which seem to support the proposition,

Just checking, but is this company data, or what?

>what is missing is
>a test of the extent to which the distribution is actually
>a Gamma one.

Locke's test implements the Lukacs Theorem idea involving the
characterisation of the gamma and is your starting point if you want
to go beyond a Kolmogorov-Smirnov g.o.f. test (but see Shapiro and
Chen (2001) for comments and alternatives).

>However the interesting thing about F&M's argument
>is that it points one to look at something one would not
>otherwise have looked at - the dispersion of the profit share
>as a determinant of the global average rate of surplus value.

Difficult to say anything definite about this; maybe I need to look
at the OPE-L archive and bring myself up-to-date...

>As to all firms but 1 having zero s/v and the other having
>all the s/v, well there is no 'necessary' reason why this
>will not happen. There is also no necessary reason why my teacup
>should not experience significant Brownian motion, it is
>just the laws of chance are against it in both cases.

Quite -- however, I find that 50:50 Earl Grey:English Breakfast
provides sufficient impulse to get me out of the house in the morning


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