From: Ian Wright (wrighti@ACM.ORG)
Date: Thu Feb 23 2006 - 19:17:29 EST
Hi Paul I haven't got good answers to your questions regarding dynamic multi-sector models and the correct level of abstraction. This is not an area I have studied. I believe getting the right conservation relations are a precondition for causal theories. The TP is a kind of non-conservation result. > It would be extraordinarily difficult to construct a dynamic model > using physical quantities where the least perturbation would not > break the equal rate of profit. I was thinking that the model should include capital reallocation, as per the classicals. > One can not construct a dynamic model including physical quantities > without also modelling stocks of finished products - either held by > a wholesaling sector or by the original manufactureres. Why is that? Why not -- to begin with at least -- only flows? > From attempts to build dynamic Sraffa inspired models in the > past I note that it is very hard to get a price adjust ment mechanism > that is stable - i.e, does not produce wild fluctuations in prices that > can lead to whole industries going out of business. Aren't there some theoretical results on price/quantity instability in multi-sector models? -Ian.
This archive was generated by hypermail 2.1.5 : Sat Feb 25 2006 - 00:00:02 EST