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

From: glevy@PRATT.EDU
Date: Sat Sep 08 2007 - 14:05:47 EDT

> I'm thinking that it is not unreasonable that the level of circulating
> constant capital is a fixed ratio of fixed capital, since the fixed
> capital is designed with requirements for circulating constant capital
> inputs, like raw materials.

Hi Paul Z:

OK.  Thanks for the explanations.

I  gather you are implicity assuming that there is full capacity
utilization?  If not, (even without technological change, increases in the
intensity of labor, or increases in absolute surplus value) then output
could be increased using the same quantity of fixed capital but with
additional circulating constant and variable capital.  But, that would
change the ratio of Cf to Cc and hence not be allowed under the assumption
you are making.

An alternative mught be to treat the level of Cc as a function of the
level of  (expected) output.  If you are (for the time being) assuming no
technological change then an increasing quantity of commodity output would
require an increasing quantity of constant circulating capital input.
Just a thought.

In solidarity, Jerry

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