[OPE-L:7258] Re: TSS

From: Allin Cottrell (cottrell@wfu.edu)
Date: Fri May 24 2002 - 21:36:18 EDT


On Fri, 24 May 2002, Rakesh wrote:

> For what is TSS saying? It seems to me that they are asking that
> Marxist use some tools other than standard Samuelson-Sraffian i/o
> analysis such as difference equations and dynamic models.  So TSS
> thinks that Marx can be formalized in a dynamic model with money.

Well, we don't have the benefit of TSS people speaking for themselves,
but my objection (or part of it) is that the dynamics (the 'T' in TSS)
are pseudo-dynamics.  For example, take the equalization of the rate
of profit between sectors (or industries or firms, whatever).  Some
people (Dumenil and Levy, Steedman) have investigated the dynamics of
how a uniform rate of profit might be formed, starting from a
dispersed set of profit rates.  They have posed (and attempted to
answer) the question of whether or not this process is likely to
converge.  So far as I know, this sort of issue is entirely absent
from TSS models (or "examples" -- I think they don't like to talk of
"models").  Typical exercises from Andrew Kliman and Alan Freeman
simply assume a rate of profit that is somehow "already" equalized
each period.

As I have argued at length here some time ago, it seems to me that TSS
"temporal sequences" are in fact mappings onto imaginary time of the
iterative solution to a set of simultaneous equations.

Further, you mention a "dynamic model _with money_".  It's not my
impression that TSS people take money seriously.  In this respect,
though, they are not much different from most Marxists.  I'm with
Riccardo in thinking that Marxists have something to learn from
Keynesians (or post-Keynesians) in this regard.

Allin Cottrell.



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