In reply to Paul Zarembka's OPE-L 5073.
Paul, the fact that a model is not closed does not mean that one
can close it any which way one wants. If one introduces a
relation that is inconsistent with other relations in the model,
one just has a mess.
I suggest that the introduction of a relation stipulating that
demand for Ic is limited by the demand for consumer goods is
inconsistent with the rest of the schemes. They already
demonstrate that the opposite is the case.
My guess is that the best you could do without inconsistency would
be to write down some reduced-form of the following. Capitalists
(wrongly) think that demand for Ic is limited by demand for
consumer goods. Their investment behavior is determined on the
basis of this false belief. Underconsumption would then lead also
to sluggish investment.
But this doesn't mean that demand for Ic is limited by demand for
consumer goods. It means that demand for Ic is limited by
capitalists' FALSE BELIEF that demand for Ic is limited by demand
for consumer goods.
I couldn't figure out the floating humans and swindle stuff. That
might be due to exhaustion.
Ciao
Andrew ("Drewk") Kliman
Dept. of Social Sciences
Pace University
Pleasantville, NY 10570 USA
phone: (914) 773-3968
fax: (914) 773-3951
Home: 60 W. 76th St. #4E
New York, NY 10023 USA
"The practice of philosophy is itself theoretical. It is the
critique that measures the individual existence by the essence,
the particular reality by the Idea."
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