in reply to Andrew's 4017 > >Lefteris: "how do you determine it?" > >That is the key question of all quantitative value theory of whatever >stripe (neoclassical, post-Keynesian, Sraffian, etc.), IMHO. The answer >depends on the theory in question. P[t] is given BEFORE production, and >let's assume A and B are given. Then either the P[t+1] are determined >exogenously (e.g., by "demand," as in PK theory) which then determines r; >or r is determined exogenously, which then determines the P[t+1]. Andrew, in the last line you mean endogenously, right? > >Marx argues in the latter way. Total surplus-value or profit is >determined by (and is the monetary expression of) the amount of >surplus-labor extracted in capitalist production -- BEFORE the outputs B >are sold. Isn't just the maximum total surplus value and and r being determined before the outputs B are sold? After all, in the real world, D will not equal S, surplus value will be siphoned over in various ways which will depress the real r below the maximum r. > And >they don't need to be determined simultaneously, despite what the >"Sraffians" tell us. They can be determined, for instance, just as Marx >determines them. But how then how do you propose to determine the input unit prices on the basis of the data in Marx's tableaux or Allin's interdependent production model? And if you can't determine them, then how will you get the right cost prices (k) and the correct prod prices for the outputs (kr)? And if you can't determine prices rigorously, what kind of theory is this?! All the best, Rakesh
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