[OPE-L:5380] Re: turnover time and surplus value (stock and flow)

From: charlie (charles1848@value.net)
Date: Sun Apr 22 2001 - 15:53:27 EDT


In the numeric example in OPE-L:5373,
                c    v  sv  s/v    r
    Year 1     100  50 50  100%  33%
    Year 2     100  25 50  200%  40%
v and s must be flows over the year, since these columns are used
to calculate the s/v column. But the v column must also be a
stock, since it and the c column, also a stock, are used to
calculate the rate of profit, r = s / (c + v). Using uppercase
letters to distinguish capital stock advanced from flows of
capital over the year, the equation is r = s / (C + V).

Incidentally, turnover time can change because of changes in
production time but also because of a change in the time capital
must spend in circulation, such as the length of time that output
sits on the shelf before someone buys it.

Regards,

Charlie
Web site for my book is at http://www.laborrepublic.org



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