From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Fri Feb 24 2006 - 08:31:04 EST
Ian Wright wrote: >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 do that but it makes it even more complex to design. > > >>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? > > > Without buffer stocks, you would have to assume what you need to show. Suppose an industry is producing 5% more than total usage of its output what happens to the extra output? >>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. > > -- Paul Cockshott Dept Computing Science University of Glasgow 0141 330 3125
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