The different input parameters have different time constants. U is subject to high frequency noise, the population growth is subject to long term secular trends, depreciation rates are almost stationary.
The difficulty with predicting profit rates more than 3 years ahead is that u can change quite rapidly.
--- original message ---
From: "GERALD LEVY" <gerald_a_levy@msn.com>
Subject: Re: [OPE] FWD: Just published: THE NATIONAL QUESTION AND THE QUEST ION O F CRISIS (RPE, Vol. 26)
Date: 3rd December 2010
Time: 4:33:39 pm
> That understates its power, it is pretty good at predicting if the rate of profit next year
> will be higher or lower than last year.
Hi Paul C:
Yet, didn't you ask me in this very thread just a few days ago, to think long-term?
What is it - a short-term, a medium-term, a long-run-model (or some combination
of these)?
In solidarity, Jerry
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Received on Fri Dec 3 11:45:43 2010
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