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. > __________________________________ Yahoo! Music Unlimited Access over 1 million songs. Try it free. http://music.yahoo.com/unlimited/
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