[OPE-L:4585] Re: Rate of profit or the RRI?

From: Alejandro Valle Baeza (valle@servidor.unam.mx)
Date: Wed Nov 29 2000 - 15:23:14 EST


P.J.Wells@open.ac.uk wrote:

> John Ernst wrote [OPE-L:4577]
>
>  things
> I don't get.
>
> 1.  Is the rate of profit or the RRI equal in all sectors after the
> transformation?
>
>
> John, by RRI are you referring to the rate of return on each *chunk* of
> investment, as distinguished from the rate of profit calculated over all
> capital (I think this is the usual usage?).
>
> I have to say that it's never occurred to me that Marx might have had in
> mind equalisation of the RRI, and I don't think I've ever read anything by
> anyone who appeared to think this.
>
> Would you like to enlarge on what prompted your question?
>
> Julian

RRI and rate of profits are different. If I remeber well this difference lead
to accounting rate of profit vs. economic rate of profit (RRI) debate. Dumenil
and Levy have done good research on this matter. If some one are interested I
can post the reference.

Alejandro Valle Baeza






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