John Ernst wrote:
> 2. Can we come up with examples of any "mechanized"
> capitalist investing so that the new technique has a
> higher constant capital to output ratio? (Duncan
> and Paul C. responded to this question earlier, but,
> other than Duncan's guess about the auto industry, we
> have little to go on here.)
The chemical industry is an example. In fact, we will see this
ratio generally rise with an increase in the durability of the
capital stock.
In contrast, computers, with a short lifetime, often drop the
ratio.
-- Michael Perelman Economics Department California State University Chico, CA 95929Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu