Re: [OPE-L] Okishio's Theorem - the ABCs (reply to Fred)

From: GERALD LEVY (gerald_a_levy@MSN.COM)
Date: Sat Nov 03 2007 - 16:20:12 EDT

>  But WHICH rate of profit and WHICH THEORY of the rate of profit?
>  Whether or not this theorem is true depends on one's theory
>of the rate of profit. It may be true for one theory of the rate of profit,
>  not true for other theories of the rate of profit.
>The TSSI and the Okishio theorem are based on DIFFERENT rates of
>profit. The Okishio theorem is based on linear production theory and
>simultaneous determination and the TSSI is based on temporal
>  determination. The Okishio theorem is true in terms of its own theory
>of the rate of profit, but it is not true in terms of the temporal
>theory of the rate of profit. As Anders said in a recent post: "The
>premises of Okishio is clearly different from Marx's"

Hi Fred:

There are _many_ theories of profit rate determination, including (but not
limited to) :

a) Okishio's  theory of the profit rate.

b) the TSS theory of the profit rate.

c) Marx's theory of the profit rate.

You are saying above that a) and b) are different.  I agree with you. In any
that's obvious and non-controversial.

However, for the TSSI claims to have validity --  since it claims to present
c) --
b) must equal c).    If b) does not equal c) then -- even if  a) does not
equal c)
--  the TSSI claims fail.

Going back to the arly 1980s, there was already wide agreement by many that
a) did not equal c). There is, in fact, a large literature on this - some of
which I
alluded to previously.  In the context of that period, it could be seens as
"fundamentalist" answer to a).  Unless you think that b ) equals c) [which
as I've
read what you've written previously, you do *not* believe], then there has
no significant advancement in knowledge since about this.

In any event, once you've said that a) does not equal c) then you still have
to address the issue of which is to be preferred and then you are  NOT
interprerating Marx.

Earlier today I looked through my file of articles by Okishio.  It is
that so much of his scholarly work has been ignored because of the obsession
with "Okishio's Theorem".

In solidarity, Jerry

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