Re: [OPE] Linear transformation between equilibrium prices and labour values

From: Ian Wright <>
Date: Sat Dec 04 2010 - 13:03:14 EST

> The problem is that the hypothetical state of equilibrium in a capitalist
> economy is bullshit. I wonder if the efforts to support the Marxian theory
> in these terms are of any worth. After all, equilibrium economists are
> facing an increasing discredit in the profession.

I demonstrate these results in a fully dynamic model.

What kind of equilibrium do you mean? There is very strong empirical
evidence that economic reality approximates a state of statistical
equilibrium (an equilibrium in which change constantly occurs but some
distributions are constant).

Granted, a realized state of deterministic equilibrium is contrary to
experience. But, as I have tried to point out previously, this
empirical observation does not imply that equilibrating dynamics are
not in fact operating, with their own attractors, which are partial
causes of the stream of economic events, any more than a bird flying
implies that the law of gravity is not operating. So there is enormous
analytical value in examining counterfactual models that deliberately
assume that some economic forces are fixed or absent ("simplified
models"), since they can reveal important aspects of economic dynamics
in isolation. This is highly analogous to experimentation in the
physical sciences.

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Received on Sat Dec 4 13:04:48 2010

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