OPE-L:_Wage_share

From: Ian Wright (iwright@GMAIL.COM)
Date: Tue Sep 14 2004 - 17:51:25 EDT


---------- Forwarded message ----------
From: Julian Wells <julianwells@gn.apc.org>
Date: Sun, 12 Sep 2004 20:54:35 +0100
Subject: Re: [OPE-L] OPE-L:_Wage_share
To: wrighti@acm.org, OPE-L <ope-l@sus.csuchico.edu>

Thanks for copying this to me: this is a quick response without
reference to the text, but with this caveat feel free to pass it on
the OPE-L.

If memory serves the 50:50 split in F&M is deduced as a consequence
of Lukacs' Theorem, in the (arguably very special?) case that the
rate of surplus value has a *degenerate* distribution, i.e. has a
uniform value.

Since the theorem concerns a property unique to the gamma (and which
is indeed used as a test for "gamma-ness" of data -- I can dig out
ref.s if needed) I don't readily see how it might apply if the rate
of profit is not a gamma.

But n.b. that F&M's argument relates to s/v as a random variable in
the firm space; it is to do with s/v as a characteristic of
individual firms, not the global rate of exploitation.

Obviously if s/v has a degenerate distribution =1, then the global
rate is necessarily =1.

But if not, offhand I can't think of any necessary relationship
between the global rate and the distribution: no reason, for example,
why all firms bar one could not have s/v=0, and the remaining firm[i]
having s/v = sum(s)/v[i].

In your social architecture paper there is only variable capital, so
the rate of profit and the rate of exploitation are one and the same,
of course.

Julian


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