Re: Carchedi's TSS approach

From: Paul Cockshott (clyder@GN.APC.ORG)
Date: Thu Mar 11 2004 - 13:36:31 EST


>
> If one assumes by definition that production prices are long term
> equilibrium prices. I don't assume that. I have quoted evidence from
> Ricardo where he did not believe that. To say that there is a
> tendency for the rate of profit to equalize across sectors over time
> is not to say that there is a tendency for the economy to settle into
> a state in which input prices and output prices are  identical.  Said
> assumption is also not logically required to distinguish production
> prices from market prices or prevent Marxian theory from collapsing
> into institutional economics.
>

Well in that case you should model the prices as being profit
rate equalising prices plus or minus a noise term. If one does
not include the noise term one is assuming complete thermodynamic
equilibrium at 0 degrees.


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