Re: [OPE-L] models with unequal turnover periods

From: Ian Hunt (ian.hunt@FLINDERS.EDU.AU)
Date: Thu Sep 06 2007 - 19:37:04 EDT

Dear Jerry,
In my paper on the falling rate of profit I have 
a model with unequal turnover periods of capital. 
Unhappily it is a simultaneous equation model...

>  >> Marx’s theory, on the other hand, does not require the unrealistic
>>  assumption that all industries have the same turnover period, and
>>  therefore is a much more promising approach to understand the
>>  complexities of price determination in capitalism.
>Hi Fred:
>Well, how many formal Marxian models (or numerical "illustrations")
>incorporate unequal turnover periods among branches of production?
>Most of those models don't even incorporate constant fixed capital
>(i.e. they are "circulating capital" models) or, if they do, they make
>heroic assumptions about the depreciation of the fixed capital.
>In any event, if the issue is to "understand the complexities of price
>determination in capitalism" then the focus should be on the real subject
>matter (capitalism) rather than simply "Marx's theory".
>In solidarity, Jerry

Associate Professor Ian Hunt,
Dept  of Philosophy, School of Humanities,
Director, Centre for Applied Philosophy,
Flinders University of SA,
Humanities Building,
Bedford Park, SA, 5042,
Ph: (08) 8201 2054 Fax: (08) 8201 2784

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