[OPE-L:4192] profit rate determination

Gerald Lev (glevy@pratt.edu)
Wed, 12 Feb 1997 14:15:46 -0800 (PST)

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Andrew K rote in [OPE-L:4191]:

> These are the issues. They have NOTHING to do with whether "perfect"
> capital mobility ACTUALLY EXISTS. If it does not (and it doesn't),
> profit rates are not equalized (and they're not), commodities don't
> exchange at their production prices (and they don't), and capitalists
> have to seek the highest profit rate than can actually achieve, given
> the additional constraints they face (such as inability to enter certain
> sectors and/or costs of transferring capital from one sector to
> another). But again, that's not what is at issue in the debate over
> the transformation. It is not a model of an ACTUAL economy, with its
> actual rigidities and so forth.

OK, let's assume that everything above is true. Where does that leave us
in terms of profit rate determination in actual capitalist economies
where these constraints and rigidities exist? In other words, how do we
theorize the impact of capital immobility, etc. on profit rate

In solidarity, Jerry