On Thu, 12 Sep 1996, Gerald Levy wrote:
(in part)
>
> > I think it would be more fruitful to focus on the problem of theories of
> > profit rate determination and competition under conditions of continuing
> > technical change (a constellation of questions that we are far from having
> > any agreed-on answers to).
>
> Before we can give "any agreed-on answers", we first have to identify the
> "constellation of questions." Duncan: from your perspective, what are
> some of the questions in the constellation? If others want to identify
> questions in the constellation, I would be very interested in hearing
> their questions as well?
Well, I think it would be good to start by building on the examples put
forward by Andrew and Alan, but with a more explicit discussion of the
assumptions about competition, the formation of prices, and the definition
of the interest rate. Let's suppose we have a capitalist economy that
faces a continuous process of technical change, with long but finitely
lived fixed capital, organized in a large number of atomistically
competitive profit-seeking firms. What will be the trajectory of the
profit rate under various assumptions about expectations formation,
competition, and various definitions of the profit rate?
Duncan