Re: [OPE-L] standard commodity

From: Philip Dunn (pscumnud@DIRCON.CO.UK)
Date: Sun Mar 13 2005 - 04:11:31 EST


Quoting Andrew Brown <A.Brown@LUBS.LEEDS.AC.UK>:

>       The only relevant things you can compare are unitless rates such as profit
> rate or income shares. 

In some models, among them the Sraffa model, the rate of profit appears to be
dimensionsless: it is the fraction by which capital increases over a cycle. 
Because the length of the cycle is set equal to 1, expressions such as (1+r)
can appear in the equations.

This does not make it dimensionless.  It has the dimensions of "one over Time".

A rate of profit is the ratio of a flow rate to a stock.


Philip Dunn


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