[OPE-L:3455] accumulation suggestion

Gerald Lev (glevy@pratt.edu)
Thu, 17 Oct 1996 06:10:33 -0700 (PDT)

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I think we've reached the point where we need to disengage from the
accumulation/assumptions thread since we're all getting repetitive, IMHO.

IMO, part of the problem is that we are discussing several issues on one
thread -- the Okishio thread. There is, of course, the question of the
Okishio Theorem and critiques of that theorem. However, there have also
been discussions of non-equilibrium dynamic theory, the LTGRPD,
depreciation, and forms of technical change on that thread. Now here's
what I see as a workable plan for proceeding:

(1) Let the Okishio thread continue. If people on that thread want to
assume v = 0, then so be it. If others object to procedures adopted in
that thread, then they can make their objections known as the
thread continues, but the thread itself should continue so long as
participants find the thread useful.

(2) Since there have been a number of listmembers who have objected to
conventions adopted on (1) and since they, as well, want to discuss
disequilibrium dynamic theory, let's have a *separate* thread in which we
can be able to do so [but where participants in (1) can also make their
objections and thoughts known]. I would suggest that (2) *begin* not with
Okishio, but with Marx. I think the easiest way to begin would be for us
to first identify the variables that we feel need to be incorporated into
a dynamic disequilibrium analysis and then to decide on the order in
which we want to discuss questions, e.g. which variables we will hold
constant *initially* through the convention of simplifying assumptions,
and then to decide in what order we want to relax those assumptions.

For those who are interested in (2), here's my tentative suggestion: To
*begin* with, let's not develop equations. Let's begin by establishing the
assumptions, parameters, and sectors required to initially conceptualize
the subject at hand in (2) -- the accumulation of capital. Here's my
tentative list:

o commodity production;
o money;
o c, v, ad s are all variables;
o different branches of production and competition (with different
compositions of capital and rates of profit).

I think the above would require multi-sectors.

Let's then consider the circulating-capital-only case where there is
labor-saving technical change and where the size of the working population
is allowed to vary.

Let's then consider the cases where there are constant fixed capital,
different forms of technical change, moral and straight depreciation, and
different turnover times for constant fixed capital.

Let's then consider financial markets and demand.

Let's then consider the case where there are different market structures
in branches of production, e.g. where there is oligopolistic rivalry and
price determination by some firms.

Let's then consider other variables not explicitly dealt with above.

This sounds like a rather large plate, but I think that ultimately it
would be a useful -- if prolonged -- discussion.

What do others think about the above?

In Solidarity,

Jerry