Re: [OPE-L] Che Guevara and the Sraffian notion of profit

From: Paul Cockshott (clyder@GN.APC.ORG)
Date: Tue May 08 2007 - 04:55:21 EDT


Quoting Ian Wright <wrighti@ACM.ORG>:

> > von Neumann does track growth of capital stocks in a similar model of **
> > proportionate **  growth using non-unitary matrices, so I infer that the
> same thing could
> > be done with Sraffa's.
>
> Yes it can. But the non-unitary matrix employed in proportionate
> growth models (e.g., Pasinetti in his Lectures on the Theory of
> Production) is merely the result of the representational choice of an
> open model. One can just as easily model proportionate growth in terms
> of a closed model with a unitary matrix. In this case, as before, a
> surplus is produced, its scale grows exponentially over time, but its
> distribution to households is specified. Per-capital consumption is
> constant.
>
I dont see how you get a unitary matrix since if we multiply the net
output vector by the technology matrix we get a net input vector that is a
scalar multiple less than one of the output vector.

Paul Cockshott

www.dcs.gla.ac.uk/~wpc
reality.gn.apc.org

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