[OPE-L:4219] Re: profit rate determination

aramos@aramos.b (aramos@aramos.bo)
Fri, 14 Feb 1997 04:44:15 -0800 (PST)

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Paul, thanks for your replies.

In ope-l 4216 you wrote:

> One would compute time series not in terms of labour time
> but in terms of money. Since there is a very close correlation
> between monetary aggregates and labour time ones, the errors
> due to using money calculations are not serious.

How do you know this? If you say that there is a "close
correlation" you would have a complete set of both labor-time and
money series. For a "complete set" I mean all the relevant aggregates
for calculating profit rate.

But, for example, how do you compute fixed capital in labor-time
terms?

Moreover, when you say that "there is a very close correlation
between monetary aggregates and labour time ones" are you using money
aggregates at "current" or "constant prices"?

I am also curious regarding Johns question:

(snip)
>In practice by far the harder problem relates to distinguishing
>between the profit and the total surplus value produced, since
>this appears both as profit and as rent and the wages of unproductive
>workers. It is how to deal with the unproductive sector that
>gives rise to most of the practical problems.
>----------

John comments:

It is becoming increasingly unclear to me how depreciation charges are
separated from profits in this type of endeavor.

Alejandro Ramos M.
14.2.97


>
> In practice by far the harder problem relates to distinguishing
> between the profit and the total surplus value produced, since
> this appears both as profit and as rent and the wages of unproductive
> workers. It is how to deal with the unproductive sector that
> gives rise to most of the practical problems.