From: Paul Cockshott (clyder@GN.APC.ORG)
Date: Thu Mar 11 2004 - 13:36:31 EST
> > If one assumes by definition that production prices are long term > equilibrium prices. I don't assume that. I have quoted evidence from > Ricardo where he did not believe that. To say that there is a > tendency for the rate of profit to equalize across sectors over time > is not to say that there is a tendency for the economy to settle into > a state in which input prices and output prices are identical. Said > assumption is also not logically required to distinguish production > prices from market prices or prevent Marxian theory from collapsing > into institutional economics. > Well in that case you should model the prices as being profit rate equalising prices plus or minus a noise term. If one does not include the noise term one is assuming complete thermodynamic equilibrium at 0 degrees.
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