[OPE-L:4897] Re: Re: Re: RE: Re: Give us some NUMBERS, Fred! (was: rent and the working class)

From: Steve Keen (s.keen@uws.edu.au)
Date: Wed Feb 14 2001 - 07:14:35 EST


RAKESH,

FOR THE LAST TIME (gee it's fun to shout some times!), I DO NOT, NEVER
HAVE, AND NEVER WILL USE SIMULTANEOUS EQUATIONS IN ANY OF MY WORK.

If you really want to see how I model, then read some of my papers. The
most useful here would be my CRITIQUE (yes, critique!) of Sraffian concepts
on price formation in ROPE 1999: "Answers (and Questions) for Sraffians
(and Kaleckians)", Review of Political Economy, Vol. 10, No. 1, 73-87.

I work in NONLINEAR DIFFERENTIAL EQUATIONS. Where I use matrices (as in
that article cited above), they are employed as components of a dynamic
analysis.

Steve
At 08:26 PM 2/13/01 -0800, you wrote:
>Steve writes in 4887:
>
>
>>
>>
>>Why do I believe Marx would reject this? Because, at least on first glance,
>>it allows you to put any numbers you like into your system--it brings in a
>>level of arbitrariness which may appear to make the elaborated system
>>(multi-commodity) consistent with its precept (labor as the only source of
>>value), but which makes it impossible to have any structured analysis of
>>any issue beyond that.
>
>But Steve by putting  the same input and output prices into your 
>system, you are putting in the numbers you like because only then is 
>the price problem tractable in terms of simultaneous equations 
>(assuming resolution of the distributional issue). But the need to 
>close a mathematical problem does not make the assumption necessary 
>to do so not unrealistic. So I don't see how you have made any 
>argument that the numbers you want to put in (or rather the 
>stipulation that the numbers are the same at t0 and t1) are not 
>unrealistic and thus arbitrary.
>
>Yours, Rakesh
>
>
Dr. Steve Keen
Senior Lecturer
Economics & Finance
Campbelltown, Building 11 Room 30,
School of Economics and Finance
UNIVERSITY WESTERN SYDNEY
LOCKED BAG 1797
PENRITH SOUTH DC NSW 1797
Australia
s.keen@uws.edu.au 61 2 4620-3016 Fax 61 2 4626-6683
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