[OPE-L:1011] Re: Re-Post of Andrew's [954] on the "transformation prob

Paul Cockshott (wpc@clyder.gn.apc.org)
Thu, 8 Feb 1996 13:49:29 -0800

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Andrew
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If v is the vector of unit values, A the input/output matrix, and L the
vector of living labor coefficients, most "Marxists" have DEFINED
values as
v = vA + L ==> v = L(I-A)**-1

THIS is simultaneous valuation.

Paul
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I have certainly used an approximation to the above in
attempting to estimate price value correlations for
the UK and US.

1) Working from existing sources - the i/o tables -
what is your prefered procedure for computing specific
price value coeffeicients for industrial sectors,

2) what is the degree of variation between the results
obtained using your prefered approach and those arrived
at using the definition of value given above,

3) which method is the better predictor of market
prices