[OPE-L:4597] Re: My confusion on transformation

From: John Ernst (ernst@pipeline.com)
Date: Mon Dec 04 2000 - 01:30:26 EST


I had written:


> Given that we are to use an average RRI in computing prices
> of production,  I'm still unclear and repeat my question.
>
> "How do you compute the values that are to be transformed from a given
> set of physical quantities?"

____________________

Ajit wrote:

It is because computation of values from a given set of physical
quantitites has nothing to do with RRI. Cheers, ajit sinha

My question:  Ajit,  are you saying that one can compute values in the 
usual way and then use those values to derive a set of prices assuming
equal RRI's?   If so, would we not have to know something of how much
of the value remains in the fixed capital not yet used up?

I suspect I may be in *some* agreement with you on this as starting with 
the usual notion of value and then transforming those values into prices 
of production with a uniform RRI seems, at best, problematic. One has
to ask how useful the usual notion of value is when it comes to using 
the RRI.
   


Thanks,

John

 



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