[OPE] paper on the dynamics of the law of value

A new paper of mine might be of interest to OPE-L. It's a formal model
of disequilibrium supply/demand dynamics in a multi-sectoral economy.
Part 1 of the paper is restricted to simple commodity production. I am
currently working on part 2, which extends the analysis to simple
reproduction.

You can download the paper here:
http://207.45.187.42/%7Ewright/wrightNaturalPricesPart1.pdf

There are a number of things in this paper that might be of interest:
 - Proper disequilibrium dynamics that occur in real-time (i.e., not
at all like neoclassical tatonnement!) involving both price and
quantity adjustments.
 - An integration of short-period scarcity dynamics with long-period,
classical natural prices proportional to labor-values (for
reproducible goods)
 - A proof of local stability of the classical adjustment process in
this special case
 - A more philosophical discussion of the relationship between
labor-value and price, using Mirowski's distinction between field and
substance theories of value as a foil. I tackle the question of the
material nature of the value substance with reference to this dynamic
model. This question has been discussed quite a lot over the years on
OPE-L.

I'd be happy to receive any comments, either offline or online.

Merry xmas to all!

-Ian.
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Received on Wed Dec 23 16:06:42 2009