[OPE-L:7911] Re: valuation of constant capital

From: gerald_a_levy (gerald_a_levy@msn.com)
Date: Tue Nov 05 2002 - 08:01:53 EST


Re Tony's [7905]:

Previously, in [7902], I wrote:

I take this to mean that from an accounting perspective there
are decided advantages to estimation at historical cost even 
where  (if) estimation at historical cost is a poor method for
describing the real changes in the exchange value of means of
production. Yet, it is the latter which has by far the more 
importance from the perspective of political-economic theory.

Tony responded, in part:

I don't want to concede entirely your latter comment, "Yet, it is the latter which has by far the more importance from the perspective of political-economic theory."  Surely, it could be argued that, having more auditable numbers (historic cost) is also very important from the perspective of political economic theory.   Everything turns on what we make of the latter.  

Jerry now responds:

Granted.    What I meant to suggest  is that accurately 
describing the real changes in the exchange value of 
means of production following technological change
is a more *basic* theoretical issue than what accounting
method is chosen by firms to estimate these changes.
Thus, one method might be better for auditing purposes
while another method might  embody a better description 
of the underlying economic processes.  

In solidarity, Jerry

PS on Michael P's [7904]:  I tried 'googling' (i.e. searching
for your paper with the 'advanced search' function at
www.google.com ) and couldn't find your 'devalorisation'
paper anywhere -- although several sites had a short
abstract of the paper.


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