I don't think I agree with all of these methodological points. In general, models always abstract from critical features of reality. The important question is whether the model has enough detail to throw light on the problem it's aimed at. For example, it is very difficult to deal with the relation between c and v in empirical studies of most modern economies because the data is not available at the flow level to measure c. But I don't think that means Marxist economics should just give up on those economies. I agree with you that "specific to capitalism" requires a the concept of labor-power, but I don't see why you tack "multi-commodity production" onto the list, in the sense that the technology has to have a significant difference in compositions of capital across sectors. Some capitalist economies might have relatively little dispersion of compositions of capital, but they would still be capitalist. Duncan >Re Duncan's [OPE-L:5152]: > > > >> You'd probably want to treat labor-power as a >> different commodity in this setup. But any >> general theorems that would be true for >> multi-commodity economies would have to hold >> for this one as well. > >I don't think that follows. If it did, then perhaps >we'd be able to conclude that any general >theorems that apply within a Walrasian >general equilibrium system also apply within >a capitalist economy. > >What is at issue is the minimum specification >for a model or illustration that purports to have >meaning for a capitalist economy. If we don't >accurately specify the model, then we can obtain >a model or illustration that has as much meaning >for comprehending capitalism as the Walrasian >model. > >If we eliminate in our models and >numerical illustrations the distinguishing >characteristics of capitalism as a distinct mode >of production (such as the class relations specific >to capitalism) then our theory can no longer >comprehend the nature of any subject matter >specific to capitalism. This means that our >illustrations must have the two major classes, multi- >commodity production, labor-power, money, and >the basic categories associated with capitalism >(including c, v, and s) if it is to have analytical worth. If we are talking >about technical change >and dynamic models/illustrations, then I think >that our illustrations should also have constant >fixed capital as well as constant circulating >capital. > >In solidarity, Jerry -- Duncan K. Foley Leo Model Professor Department of Economics Graduate Faculty New School University 65 Fifth Avenue New York, NY 10003 (212)-229-5906 messages: (212)-229-5717 fax: (212)-229-5724 e-mail: foleyd@cepa.newschool.edu alternate: foleyd@newschool.edu alternate: dkf@ultinet.net webpage: http://cepa.newschool.edu/~foleyd
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