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

From: Alejandro Agafonow <>
Date: Sat Dec 04 2010 - 21:31:14 EST

Ian, I’m afraid I cannot repeat all the arguments I posted during our discussions before. There is a fundamental misconception in this analogy with the physical world, and you and your allies keep pointing out to fictitious data, i.e. mathematical deductions based on counterfactual propositions. When are you going to ‘face the music’ and confront criticisms in their own terms?  A. Agafonow ________________________________ De: Ian Wright <> Para: Outline on Political Economy mailing list <> Enviado: dom,5 diciembre, 2010 03:03 Asunto: Re: [OPE] Linear transformation between equilibrium prices and labour values > 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. -Ian. _______________________________________________ ope mailing list

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Received on Sat Dec 4 21:33:01 2010

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