>Paul:
>
>Relevant factor is the product of the number of passengers carried
>times the value of their tickets. Value of tickets fell following
>introduction of jumbo jets.
>
>John:
>
>I agree that if we wanted to directly look at the rate of profit
>the value of the tickets would be relevant. I am not taking things
>that far at this point. I am simply looking at which increases
>faster as technical change takes place -- constant capital or
>output. Obviously, the next step would be to look at the manner
>in which the value of the tickets changes. Your example would seem
>to fall into the category of capital-saving technical change as the
>growth of constant capital is less than that of output.
>
>
Paul :
I am doubtfull. The output that is relevant is always the value
output. The value of the aircraft industry's output did rise,
but more slowly than the number of passengers carried. I would
strongly suspect that the capital stock increase represented by 747s
replacing 707 was greater than the increase in the value of tickets
sold. One would have to do some practical investigation into the accounts
of Pan Am etc over the period 1965 - 1975 to check this.
Paul Cockshott (wpc@cs.strath.ac.uk)