Re: [OPE] webpage computing dynamic rate of profit

Gerald Levy wrote:
>
> What is the definition given for the equilibrium rate of profit? Is
> this taken to
> mean the average rate of profit, for instance?

Yes, it is an attractor for the mean of the distribution of profit rates
in an economy. The measure of profitability considered here is the same
used by many in the Marxist literature: R = P / K, i.e. the annual net
profits over the stock of fixed capital.

The derived equilibrium profit rate is:

    r_eq = ( gL + gP + d) / i

where

   1. gL = growth rate of labour
   2. gP = growth rate of average productivity
   3. d = depreciation rate of capital stock
   4. i = gross investments as a fraction of net profits

//Dave Z
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Received on Fri May 15 17:28:21 2009