[OPE-L:4203] Re: Depreciation and Financing

aramos@aramos.b (aramos@aramos.bo)
Thu, 13 Feb 1997 08:25:58 -0800 (PST)

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In OPE-L 4194, John E. writes:

> Thus, after Chapter 4 of Vol. 3, we have no formula for the
> rate of profit given the presence of fixed capital. Instead,
> we move forward using formulae for the rate of profit as if
> there is no need to consider fixed capital as technical
> changes occur. Indeed, when we encounter the problem of
> transforming values into prices of production, not only do we
> abstract from fixed capital but technical change as well when
> we assume unit input prices and values are equal to unit
> output prices and values, respectively.

But, when Marx considers the "transformation" in the FIRST example of
Vol. 3, Ch. 9, he indeed includes fixed capital (See Intl. p. 155-6
or Penguin pp. 255-6).

I agree that he does not consider fixed capital AND technical change.
In particular the effect of technical change in the calculation of
profit rate is not clearly analysed in his text.

John also says:

> Rather, again, we first need to back
> up and establish an expression for the rate of profit with
> fixed capital.

I would add:

"...with fixed capital AND TECHNICAL CHANGE."

Alejandro Ramos M.
12.2.97