[OPE-L] Computerization and the TCC, VCC, & OCC

From: Jurriaan Bendien (adsl675281@TISCALI.NL)
Date: Thu Feb 16 2006 - 09:46:00 EST

I'm quite aware of the TCC/VCC distinction, and you are correct that the TCC
is difficult to measure because it refers to the physical quantity of means
of production per employee -as a proxy we can calculate fixed capital (and
intermediate goods) per worker; by dividing the intermediate consumption
flow - insofar as it is composed of goods, not services - by the average
inventory level, we can have some indication of the average stock of
intermediate goods worked with at any time. But unfortunately, intermediate
consumption data is not normally classified by type in social accounts. It's
possible as you say that a smaller but more expensive physical quantity of
means of production is used. Another problem is that V should really be
measured as a stock, not a flow, i.e. the capital used to pay salaries may,
in manufacturing and certain services be only 1/10th of the annual flow
since the capital funds needed to pay salaries are recouped through revenues
from ongoing output sales. Presumably computerisation has a strong effect on
the turnover-time of capital, which would tend to lower the VCC. But I have
no good empirical evidence for that.


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