Re: [OPE-L] equilibrium and simultaneous vs. sequential determination

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Thu Sep 06 2007 - 22:47:06 EDT


Quoting ajit sinha <sinha_a99@YAHOO.COM>:

> --- Fred Moseley <fmoseley@MTHOLYOKE.EDU> wrote:
>
>> And let’s not forget that the Sraffian method of
>> simultaneous
>> determination of input prices and output prices from
>> given physical
>> quantities is not really a viable theoretical
>> alternative.  Because it
>> is based on the completely unrealistic assumption
>> that all industries
>> have the same turnover period.  This is not a
>> simplifying assumption,
>> that could be relaxed at a later state of the
>> theory, but is instead a
>> necessary essential assumption that could not be
>> relaxed, without which
>> the theory doesn’t work.
> _________________________________
> So Fred, Sraffa had never read Ricardo and Torrense?
> Or you have never read Ricardo? I leave aside your
> peculier interpretation of Marx's prices of
> production, because no matter how many times I show
> your elementary mistakes you are never going to
> acknowledge it. Cheers, ajit sinha


Ajit, Ricardo and Torrens dealt with unequal ratios of fixed capital
and circulating capital across industries.  They did not deal with
unequal turnover perods of circulating capital across industries, which
is what I am talking about.  I argue that Sraffa's theory requires
equal turnover periods of circulating capital across industries for
reasons given in my last message.  If anyone in the Sraffian literature
has explicitly incorporated unequal turnover period of circulating
capital across industries, please give the references.  Thanks.

Fred

P.S.  Sraffa had this to say about Ricardo's problem (Appendix D, p. 94);
"Ricardo ... brought to light the complications which the use of FIXED
CAPITAL IN VARIOUS PROPORTIONS brings to the determination of values
..."  (emphasis added).  This is not the problem I am talking about.
The problem I am talking about is unequal turnover period of
circulating capital across industries,
which "brings to the determination of values" additional "complications".

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