From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Sun Feb 05 2006 - 11:51:05 EST
On Sun, 29 Jan 2006, Ian Wright wrote:
> Yes, if we don't assume simultaneous determination, and view Marx's
> two-step procedure as an embryonic account of the process of the
> formation of the general rate of profit, then there will be such
> mismatches because the economy is in a state of disequilibrium.
No, this is not true. Simultaneous determination of input prices and
output prices is not necessary for equilibrium prices. Marx's theory of
prices of production
PPi = (Ci + Vi) (1 + R)
takes the input prices (Ci and Vi) as given and assumes that all
industries receive the same rate of profit (R, which is determined by the
prior macro theory of Vol. 1), and thus all industries are in equilibrium.
Ian, would you please explain why you think this is a state of
disequilibrium.
Thanks,
Fred
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