> I agree that one possible hypothesis is that the disorder we see in real profit
> rates arises from technical change. Another possibility is that it arises from
> variations in the turnover and depreciation rates of capital stocks in different
> industries and firms which would mean you have a large number of coupled oscillators
> with different periods which could have a similar dispersive effect.
Hi Paul C:
Well, I don't see how you can analytically separate these two hypotheses since
variations in the turnover and depreciation of capital stocks in different industries
and firms is often an expression of technical change. We can see this clearly
when we consider moral depreciation. To be able to empirically measure the effect on the
rate of profit of depreciation and turnover of constant capital which is
independent of technical change we'd have to disaggregate depreciation into
physical and moral depreciation but that would presume there are accurate methods
for calculating moral depreciation across firms and industries. But, I know of
no such methods - do you?
In solidarity, Jerry
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Received on Tue Dec 14 07:34:01 2010
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