[OPE-L:7968] [Fwd: list OPE-L: List Message Rejected]

From: OPE-L Administrator (ope-admin@ricardo.ecn.wfu.edu)
Date: Fri Nov 08 2002 - 07:05:03 EST


From: Paul Cockshot <wpc@dcs.gla.ac.uk>

On Thu, 2002-11-07 at 18:23, S.Mohun wrote:
> clyder@gn.apc.org wrote:
>
> > > Response: I don't follow this. But empirically it is wrong. Over
> the period 1964-2001 for the US economy, we have
> > > 1964-1972: OCC greater than VCC
> > > 1973-1991: VCC greater than OCC
> > > 1992-2001: OCC and VCC virtually identical.
> > >
> > > To give some idea of orders of magnitude:
> > > In 1964 TCC = 41.06, OCC = 3.67, VCC = 3.48.
> > > In 2000 TCC = 66.13, OCC = 4.46 and VCC = 4.45
> > >
> >
> > Could you please give the dimensions of the units involved.
>
> TCC: (Net Fixed Assets of productive sectors in) chained 1996 dollars
> per hour (of productive labour)

Why do you not use hours as the valuation of the fixed assets - is it
because you only have aggregate figures?

> OCC: (Net Fixed Assets of productive sectors in) chained 1996 dollars
> per chained 1996 dollar (of the gross wages paid to productive
> labour). The denominator is deflated by an implicit price deflator for
> NDP, so the real wages are product wages.
> VCC: (Net Fixed Assets of productive sectors in) current prices per
> current dollar (gross wage cost of productive labour)
>
> >
> > I assume that OCC and VCC are supposed to be dimensionless, but
> there must be some implicit imputation of a stock to variable
> > capital in this. When doing so, what time period do you use.
>
> Annual BLS data adjusted to match NIPA data.
>
Then your dimension of OCC should surely be:
$/($/year) = years


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