>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.
>
Paul:
If this is what you mean by capital augmenting technical change, then I
would agree that a recursive definition of values would predict that it would
be accompanied by a rising rate of profit.
If you think that it would be accompanied by a declining rate of profit,
why not look through the historical records and see if you can find
periods for which your hypothesis can be tested and see which way the rate
of profit moved?
Paul Cockshott
wpc@cs.strath.ac.uk
http://www.cs.strath.ac.uk/CS/Biog/wpc/index.html