From: glevy@PRATT.EDU
Date: Fri Sep 07 2007 - 22:36:13 EDT
> Regarding turnover, I'm working on a two-department model with the annual > flow of circulating constant capital costs an unchanging fraction f of > fixed capital and turnover of circulating constant capital costs at n > times annually for both departments. I'm trying to incorporate fixed > capital into Marx's reproduction schemes (remember my raising that > issue : a month or so ago?). Depreciation will be included but I > haven't gotten to exactly how. Hi Paul Z: Very interesting. So the purpose of the model is to include fixed capital (i.e. differentiate the total constant capital into constant fixed and constant circulating capitals) in the reproduction schemes [in order, presumably, to make the schemes more realistic?]? What is your thinking behind the assumption that the flow of Cc is an unchanging fraction of the cost of Cf? What happens to the flow of Cc when there are technological advances in the elements of Cf? (For instance, assume there has been a devaluation of the elements of Cf. Wouldn't your assumption then require that the Cc would be devalued as a consequence of the devaluation of Cf?) > Any comments or suggestions? I want enough realism to be interesting but > not so much as to be greatly complicated. I understand, but if you are going to model Cf don't you want to model situations where there are technological changes in means of production? In solidarity, Jerry
This archive was generated by hypermail 2.1.5 : Sun Sep 30 2007 - 00:00:05 EDT