[OPE-L:5130] Re: comparative statics

From: Steve Keen (s.keen@uws.edu.au)
Date: Thu Mar 08 2001 - 23:17:34 EST


I for one would argue that the difference does not come down to comparative 
statics; I am no fan of that methodology, but I also expect to find that 
TSS would fail to be truly internally consistent in a proper dynamic model.

Steve
At 03:14 PM 3/8/01 -0800, you wrote:
>Does the argument between TSS and its opponents come down to the question 
>of the methodology of comparative statics? Allin, Ajit and others have 
>defended its use, and argued that Marx himself employed this method. But 
>this strikes me as untrue even though I have attempted a static solution 
>to the transformation problem which I claim maintains both equalities 
>though Allin thinks I do so by definitional trick.
>
>At any rate,  comparative statics suffers from at least the following well 
>known defects:
>
>1. it exogenizes technology and other sources of change.
>2. it neglects transitional processes.
>3. it eshews a real causal theory of the developmental consequences of 
>capital accumulation; in short it seems ill suited as a method to lay bare 
>the laws of motion.
>
>All the best, Rakesh

Dr. Steve Keen
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Economics & Finance
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