Re: [OPE] webpage computing dynamic rate of profit

From: Dave Zachariah <>
Date: Sun May 17 2009 - 10:57:00 EDT

> Let's contract the list instead. Let's just look at the formula employed
> by two of those you mention above - Shaikh and Tonak. Is it P/K where
> K is all of the capital invested (K) is means of production?
Yes, see chapter 5.5.

> As you know, for
> S&T the division between productive and unproductive labor is a an
> important variable in Marxian macro empirical studies. How can this
> variable show up if the denominator in the rate of profit is simply K?

This division does not show up in the stock variable of the denominator
but is directly related to the flow variable in the numerator since
surplus value is decomposed as: S = P + U, where P is profit-type income
and U is unproductive expenditure. Thus R* = S/K an upper-bound to R = P/K.

See chapter 7.1.

//Dave Z
ope mailing list
Received on Sun May 17 10:59:15 2009

This archive was generated by hypermail 2.1.8 : Sun May 31 2009 - 00:00:03 EDT