The relation between the transformation problem and the Okishio theorem
has been discussed: by Gerard Dumenil in his papers in the 1980s on the
rate of profit and transformation problem, and by me in Understanding
Capital (Harvard Univ Press, 1986) and Money, Accumulation and Crisis
(Harwood Academic, 1986).
I don't think there's need for further modeling at this level of the
discussion of the problem. If the value of labor power, in the sense of
the wage share in value added, remains constant, rather than the real
wage, there are viable technical changes that will lower the rate of
profit (though not necessarily all viable technical changes will do so.)
I think effort now on understanding the empirical patterns of technical
change and modeling its dynamics (see, for example, Dumenil and Levy's
Economics of the Profit Rate (Elgar, 1994) or their article in the most
recent issue of Metroeconomica, for some interesting suggestions) is more
likely to bear fruit.
Duncan Foley