From: Pen-L Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Thu Mar 22 2007 - 22:41:17 EDT
Quoting Jerry Levy <Gerald_A_Levy@MSN.COM>: > [In reply to Allin and Paul C, Fred wrote] >>>>>>>>> > 3. Consider first the stock of constant capital. Capitalist FIRMS > invest a certain quantity of money constant capital to purchase means > of production (both machinery, etc. and raw materials). These > quantities of money capital invested are recorded on the balance sheets > of THE FIRMS. At a given point in time, these quantities of money > constant capital on the balance sheets of INDIVIDUAL FIRMS > could be added up to obtain the total stock of money constant capital > for the economy as a whole. (emphasis added, JL) <<<<<<<<<< > > Hi Fred: > > This is not merely or simply macroeconomic theory: *your* analysis > here is proceeding from the level of individual firms to the aggregate > level. It is thus, if you wish to use those terms, proceeding from the > microeconomic to the macroeconomic with the only caveat being > that the firms on the micro level are 'stylized' ones in which there is > not competition. The above is an empirical procedure to estimate the total M, which is what Ajit has been asking about. But Marx’s theory begins with the aggregate totals, as I have described. The relation between macro theory and GDP estimates is similar. Macro theory is about the macro variables, but these are estimated from individual data sources. > >>>>>>>>>> > 4. Similarly, the flow of constant capital is the price of the raw > materials consumed in this period's production plus the periodic > depreciation cost of the machines, etc. These quantities of money > constant capital are recorded on the INCOME STATEMENTS > OF FIRMS. These quantities of money constant capital on the > income statements of INDIVIDUAL FIRMS over a certain period > of time could be added up to obtain the total flow of money constant > capital for the economy as a whole for this period. (emphasis added, JL) > <<<<<<<<<<< > > Ditto. > > Why do you not recognize the 'microfoundations' of *your* macro > perspective? Because there is a distinction between empirical estimation and theoretical determination. Comradely, Fred ---------------------------------------------------------------- This message was sent using IMP, the Internet Messaging Program.
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