Re: [OPE-L] SV: [OPE-L] what is irrational in the functioning of capitalism?

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Sun Dec 03 2006 - 06:12:45 EST


Ajit I will reply to the other points later, just a quick one on this.
-------------------
> Paul
>
> I dont think one can be so dismissive of the
> empirical.
> You have to explain why the labour theory of value,
> if
> wrong, gives the correct predictions. Why else is
> the
> rate of profit lower in sectors with a high organic
> composition?
_______________________
Statistics cannot give you more than corelation and
corelation can be accidental. But I do not need to
explain these corelation (and to what extent the data
is reliable to be accepted as correct observation)
because I don't work in this area. But just for
curiosity, have you tried the same exercise with oil
or some other basic input used in lare proportion?


----------------
We addressed this in a 1997 paper
Labour time versus alternative value bases: a research note
Cockshott,W.P. Cottrell,A.
Appeared in:
Cambridge Journal of Economics (Volume 21)
Publication Type: Journal
Page Numbers : 545-549
Publisher: N/A
Year: 1997
ISBN/ISSN: 0309-166X
Our study showed that for  other inputs chosen from the I/O
Table the correlation between for example oil price and market price was
much much lower than for labour. This has subsequently been confirmed
for about 20 other economies by the work of Maniatis and Zacharaiah.


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