Re: [OPE] webpage computing dynamic rate of profit

GERALD LEVY wrote:
>
> Fixed capital? What about Constant circulating capital?

Sorry, by K in the model I meant all capital invested in the form of
means of production. The data is however restricted to fixed capital stock.

> Also, why
> isn't V in the denominator?
>

R = P/K is *one* way to measure the rate of return on capital invested.
If one takes it as the annual rate of profits then the turnover time for
money advanced in wage payments is taken to be relatively small. In any
case the magnitude of V is much smaller than K. But the main motivation
for me was to be consistent with the bulk of the literature on the
profit rate.

//Dave Z
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Received on Sat May 16 06:32:02 2009