Re: [OPE] webpage computing dynamic rate of profit

GERALD LEVY wrote:
>
> Let's contract the list instead. Let's just look at the formula employed
> by two of those you mention above - Shaikh and Tonak. Is it P/K where
> K is all of the capital invested (K) is means of production?
Yes, see chapter 5.5.

> As you know, for
> S&T the division between productive and unproductive labor is a an
> important variable in Marxian macro empirical studies. How can this
> variable show up if the denominator in the rate of profit is simply K?
>

This division does not show up in the stock variable of the denominator
but is directly related to the flow variable in the numerator since
surplus value is decomposed as: S = P + U, where P is profit-type income
and U is unproductive expenditure. Thus R* = S/K an upper-bound to R = P/K.

See chapter 7.1.

//Dave Z
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Received on Sun May 17 10:59:15 2009