Re: [OPE-L] basics vs. non-basics

From: ajit sinha (sinha_a99@YAHOO.COM)
Date: Sun Oct 09 2005 - 05:01:49 EDT


--- Ian Wright <wrighti@ACM.ORG> wrote:

> Hi Ajit
>
> > ___________________
> > But how cn it create any peoblem. The bean problem
> > arises because physically it takes 100 units of
> bean
> > to produce 110 units of beans, thus the sector
> cannot
> > physically generate a rate of profit higher than
> 10%.
> > Let us suppose thatt that was not the case. The
> bean
> > sector was using only 10 units of bean to produce
> 110
> > units of bean but one one unit of horse that was
> > produced by using 90 units of beans. Will this
> create
> > any problem for the bean sector? Not at all. The
> bean
> > sector can have a normal rate of profits even if
> it
> > was 15%, in this case. The problem here is due to
> > physical surplus and not due to prices. Cheers
> ajit
> > sinha
>
> In terms of my previous example, the 1 unit of horse
> would be an
> indirect input to the beans sector. Then you have a
> problem.
__________________
Well, then you will have to show me how there is a
problem.
_____________
>
> There is a reason why Kurz & Salvadori present this
> problem at the top
> of their list in their chapter on "limits" to the
> long-period method
> in their tome, "Theory of Production".
_____________________
Right now I don't have their book with me, so I don't
know exactly what you are talking about, but K and S
are not the last word of Sraffa. ajit sinha
>
> No theory is complete, and we shouldn't expect it to
> be. I am unsure
> of Sraffa's positive intentions, but the formalism
> he developed, as it
> stands, is not a complete theory of prices of
> production, contrary to
> what may be the prevailing opinion.
>
> Remember that there can be arbitrary hierarchies of
> self-reproducing
> non-basic systems. "Beans" are just a special case,
> the mote in
> Sraffa' eye, which he first itched in his appendix.
>
> Best wishes,
>
> -Ian.
>




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