[OPE-L:999] Re: Definitions and Tautologies

Paul Cockshott (wpc@clyder.gn.apc.org)
Wed, 7 Feb 1996 16:55:29 -0800

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Andrew
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Allin suggests that this makes prices "theoretically prior" to values.
Actually, it doesn't--*input* prices are *temporally* prior to output
values, but the "value" rate of profit

r = (LX - p(t)bLX)/(p(t)[A+bL]X)

enters into the determination of output prices:

p(t+1) = p(t){A + bL}(1+r)

Paul
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Does this not require the prior assumption that there exists
a uniform profit rate?

This is empirically questionable and anyway belongs to a different
level of abstraction to that appropriate for examining the concept
of value.