From: Ian Hunt (ian.hunt@FLINDERS.EDU.AU)
Date: Sat Sep 15 2007 - 21:38:55 EDT
Dear Fred, In the model, the fixed capital flow input is a quantity of value per year, with a price per unit of value for the machine. In money accounting terms, it is the depreciation of the item of fixed capital per year. Empirically, the turnover period is determined by accounting convention, together with expectations of profitable working the lifetime of the machine. Once the turnover period is found you can determine capital flows by dividing the capital stock by the turnover period. The dimension of capital stocks is money. So you divide the capital fund required for the machine, ie its capital cost in money terms, by the turnover period (whose dimension is time) to get the fixed capital flow (whose dimension is money/time). In my model, the capital is measured in value units and prices as prices per unit of value. You could also measure the capital in other units, and take prices per those units. Measurement in value units reveals the division of socially necessary labour time involved in the productive consumption of inputs. If you think the reciprocal interaction between money price and labour productivity (defined as the inverse of 'value') is important theoretically, then your theory will take value units as significant. if you have other theoretical interests, you will not doubt take other measures as the basis of your model, Cheers, Ian >Quoting Ian Hunt <ian.hunt@FLINDERS.EDU.AU>: > >>Dear Fred, >>The system that is explicitly based on Brody is in the footnotes. >>With one slip fixed up, it is: >> >>p (C + vl + Kr) = p, >>where C is the matrix of constant capital inputs (cij) , ie the >>matrix of inputs j into the production of i per year, v is the wage >>bundle per hour, l is the vector of labour inputs li into the >>production of i per year, and K is the matrix of capital stocks cij . >>tij + vli . ti , where tij is the turnover period of the capital >>input j into the production of i and ti is the turnover period of >>the variable capital input in the production of i. The turnover >>periods are the capital stock inputs divided by the capital flow >>inputs. I hope this is clear enough, > > >Hi Ian, thanks for the clarification. > >If the capital stock input is a machine, what is the capital flow input? >How do you divide the machine by the capital flow inputs to obtain the >turnover period? > >Thanks again. > >Comradely, >Fred > > >---------------------------------------------------------------- >This message was sent using IMP, the Internet Messaging Program. -- Associate Professor Ian Hunt, Dept of Philosophy, School of Humanities, Director, Centre for Applied Philosophy, Flinders University of SA, Humanities Building, Bedford Park, SA, 5042, Ph: (08) 8201 2054 Fax: (08) 8201 2784
This archive was generated by hypermail 2.1.5 : Sun Sep 30 2007 - 00:00:05 EDT