On Mon, 05 Feb 2001, you wrote: > Paul C wrote in [OPE-L:4836]: > > > Note that what is crucial for the price of production > > hypothesis is not equalization of sectoral rates > > of profit, but that these sectoral rates of profit should > > be statistically independent of the sectoral organic > > compositions of capital. > > Why is whether (or not) there is an observable tendency for the equalization > of sectoral rates of profit not (also)crucial to an empirical investigation > of whether there are (or are not) prices of production? > > In solidarity, Jerry One can still have a perfectly plausible price of production theory if actual rates of profit are a non-degenerate random variable, provided that the rates or profit are not correlated with organic composition. The alternative explanation, that prices have values rather than prices of production as their center of gravity would predict a negative correlation between profit rates and organic compositions. In order to test the price of production hypothesis this is the differentia specifica. -- Paul Cockshott, University of Glasgow, Glasgow, Scotland 0141 330 3125 mobile:07946 476966 paul@cockshott.com http://www.dcs.gla.ac.uk/people/personal/wpc/ http://www.dcs.gla.ac.uk/~wpc/reports/index.html
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