From: michael perelman (michael@ECST.CSUCHICO.EDU)
Date: Thu Dec 23 2004 - 13:17:17 EST
Rakesh Bhandari wrote: > Michael, > I'll want to read this excerpt again. Meanwhile, a few quick points: > > 1. Recessions may not improve best practice as much as bring capital > into line with it. Webber and Rigby consider this type of technical > change. Yes, that is what I am proposing. > > 2. Even though a recession induced technological upgrading may > increase the OCC, the recession induced cheapening of constant and > variable capital may imply that the VCC (measured as c/v+s) does not > rise proportionately. A point made by Mattick Jr. Again, I agree, although I push this more directly in my Marx book.. > 3. Whatever the effect on the VCC, the new investments undertaken in > a recession to ensure that costs fall faster than prices may require > an increase in minimum capital requirements and thus lead to the > concentration of capital. A point made long ago by Okishio. No problem here either. > > Yours, Rakesh > -- Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901
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