RE: [OPE] webpage computing dynamic rate of profit

> This division does not show up in the stock variable of the denominator
> but is directly related to the flow variable in the numerator since
> surplus value is decomposed as: S = P + U, where P is profit-type income
> and U is unproductive expenditure.
 
 
Hi Dave Z:
 
 
The question is what happens to V? Conventionally, within Marxian
analysis, V, like C, is a cost of production and belongs in the
denominator of the rate of profit.
 
 
> Thus R* = S/K an upper-bound to R = P/K.

 
Of what relevance is R* for *empirical* studies? At best, it is a
misguided fiction selected for mathematical purposes and having
no bearing on actual capitalist economies. (NB: don't get me {re-}
started on this topic ....)
 
In solidarity, Jerry_______________________________________________
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Received on Sun May 17 11:58:40 2009