Re: [OPE-L] models with unequal turnover periods

From: glevy@PRATT.EDU
Date: Fri Sep 07 2007 - 07:36:23 EDT


> Rather, I am talking about unequal
> turnover perods of circulating capital across industries.


Hi Fred:

If you are talking about unequal turnover periods for constant circulating
capital, I'm not sure what you see as the measurement problem here.  If
one is referring to the physical elements of constant circulating
capital, then one might reasonably project that their turnover could be
directly related to changes in the rate of output. I.e. an increase in
output generally requires an increase in constant circulating capital by a
similar proportion.  However, if one is referring to the _price_ of what
become the elements of constant circulating capital then there is no
reason to anticipate that these prices will change at the same rate as
output. It would be difficult to make reasonble projections about the
change in the prices in the elements of constant circulating capital for a
variety of reasons - especially because an understanding of the price
changes of many of these elements has to take into consideration *rent*
and natural monopolies.



> This is what
> Sraffian theory cannot incorporate, for reasons I explained in my last
> message (and copied below).


It wasn't copied in the message you sent. Rather, you copied a post I wrote.

In solidarity, Jerry


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