On Mon, 27 May 2002, Rakesh Bhandari wrote: > But Freeman's use of difference equations is not meant to explain > the formation of an average rate of profit but rather the effect on > the rate of profit from continuous or interperiodic productivity > change. While it is true that fixed capital is only replaced > periodically, it remains plausible that different firms within a > branch are replacing fixed capital at different points while all > firms are continuously achieving organizational and efficiency > improvements. You do realize that difference equations can't be used to model continuous change? Differential equations are required for that job. This is not a trivial point. Paul C has argued that TSS gets at least some of its particular results by slicing time into "periods" rather than attempting to model continuous change. Allin.
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