Re Andrew K's [OPE-L:4998]: > I. Assume a two-sector economy. Sector f produces > food by means of food and living labor; sector y > produces yachts, a luxury good, > by means of food and living labor. Workers' > consumption consists > of food. There is no fixed capital (for simplicity). <snip, JL> > . Technical change in yacht > production has no effect on its magnitude. Q.E.D. I could very well have missed it, but I didn't see the equations for technical change in your model (or "illustration" ... or "numerical example". Pick whatever term you prefer). What is the nature of the technical change that occurs in your 2-sector circulating capital-only model? btw, as someone who likes to sail, I was somewhat tickled by the stipulation that food is the only means of production used to produce yachts. I don't think that boat will float (but that is another story that I would agree is irrelevant for the purposes of this discussion). In solidarity, Jerry
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