From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Wed Feb 01 2006 - 11:03:02 EST
Andrew Hi Paul You write: "I was making very parsimonious assumptions in my post: a) Assume that the selling prices of firms are a random function of the value of their products." You seem to actually be specifying this function such that prices are proportional to values with a random disturbance (i.e. prices fluctuate around values with zero mean fluctuation). If so then you are assuming the famous aggregate equalities hold (with random disturbance). But isn't this assuming just what is at issue? Andy ---------------------------- All that one is assuming here is that there is some MELT that equates total values to total prices. But this is a necessity in any case because the two are in principle in different units. One could similarly set total actual prices to total of theoretical prices of production and see what the dispersion of prices of production around the mean would be. What I am concerned with is the constraints that reproduction sets on the dispersion of the price/value ratio as a random variable.
This archive was generated by hypermail 2.1.5 : Thu Feb 02 2006 - 00:00:01 EST