Paul,
I think our difference on this may be definitional. Here is our
"dialog" followed by my response.
On Oct 11, 1996 01:06:10, 'Paul Cockshott <wpc@cs.strath.ac.uk>' wrote:
>
>> John:
>>3. TSS opens up the possibility that you can have capital
>>augmenting technical change (see above) and a FRP. Using
>>other approaches to the concept of value, this is impossible.
>
>Paul:
>This is not the case at all.
>
>The method of determining values by recursive application of current
>production functions has nothing to do with the possibility or
impossibility
>of a rising organic composition of capital. The latter is ensured whenever
the
>rate of accumulation exceeds the rate of growth of the labour force. A
rise
>in organic composition implies, perforce, a technical change in
production.
>Paul Cockshott
>
John:
When the constant capital to ouput ratio decreases, we have "capital
augumenting" technical change. As far as I know and, clearly, within the
context of the one-commodity model we've been discussing, this translates
into an FRP under the TSS of valuation. If one equates input prices and
outprices and then computes a rate of profit using those prices, that rate
of profit does not fall given capital augmenting technical change.
John