[OPE] Estimating profit rate attractors

 Dave and I are working on trying to estimate the dynamic attractors for the rates of profit for a variety of economies. I hope I will shortly put up a web page that list members can the use to see the attractor and the real rate of profit for any country covered by the Extended Penn L tables. The work on this has been done by Tamerlan as a final year project.

We are using the formuls e = (g+d+p)/alpha to obtain the dynamic attractor for the profit rate where
e = the dynamic equilibrium rate of profit
g = the growth of the working population
d = the depreciation rate
p = equal rate of improvement in labour productivity
and alpha is accumulation as a fraction of profit, Allin, Ian, I and others go into it also in our book out this month.
What I would like to set up a thread to discuss here is whether it is better to estimate the profit rate as net of depreciation or whether one should estimate it gross of depreciation.
One also has to decide whether the rate of improvement in labour productivity should be net of or gross of depreciation.

Dave and Allin can probably provide list members with short papers arguing why this is the general form of the solution to the dynamic rate of profit equation._______________________________________________
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Received on Fri May 1 03:52:17 2009