From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Wed Oct 05 2005 - 17:17:51 EDT
The answer surely is to drop the profit rate equalisation assumption. -----Original Message----- From: OPE-L [mailto:OPE-L@SUS.CSUCHICO.EDU] On Behalf Of Ian Wright Sent: 05 October 2005 19:53 To: OPE-L@SUS.CSUCHICO.EDU Subject: Re: [OPE-L] basics vs. non-basics Hi Ajit > The bean producers do not have to buy the beans in the > market. They simply use the beans they have produced > as inputs. So the cost of beans is always based on > imputed price of beans for the bean producers. In this > case they impute a price of beans that are different > from the price of beans they sell it in the market. > ajit sinha Arguably that may work for the special case of a single self-reproducing non-basic. It doesn't work for the general case of systems of self-reproducing non-basics. For example, suppose that beans are not directly required for their own production. Instead, they are inputs to n other non-basic sectors, of which m<n of those non-basic sectors are inputs to the bean sector. In which case, beans are indirectly required for their own production. The bean producers buy the m non-basics as inputs in the market. Is it the "imputed price" or the "market price" of beans that indirectly appears as a part of the cost of those inputs? -Ian.
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