Subject: [OPE-L:1659] Re: determination of value transferred
From: Gerald Levy (glevy@pratt.edu)
Date: Wed Nov 10 1999 - 11:41:10 EST
1) Re John's [OPE-L:1658]:
Didn't Fred answer all of these claims previously on OPE-L?
2) Re Fred's [OPE-L1654]:
> I have argued in several papers and on numerous occasions on OPEL that,
> according to my interpretation, prices of production are determined by the
> following equation:
> Pi = (Ci + Vi) + r (Mi)
> where Pi stands for the price of production of each commodity, Ci for the
> periodic flow of constant capital consumed in each industry, Vi for the
> periodic flow of variable capital expended in each industry, r for the
> general rate of profit, and Mi for the total stock of money-capital
> advanced in each industry. In this equation, Ci, Vi, and Mi are TAKEN AS
> GIVEN SUMS OF MONEY, and r is taken as given as determined in the Volume 1
> analysis of capital in general. I have written this last sentence many
> times in recent years. It expresses the two main points of my
> interpretation: that C and V are taken as given and that the rate of
> profit is determined prior to prices of production.
What happens to the r and the PoP, according to your interpretation,
when the periodic flow of Ci and Vi are altered during the course of
production? I.e. what happens to PoP when the magnitude of C and V are
given but the rate of flow is non-linear? Relatedly, what role - if
any - does the release and tying-up of constant capital have in the
determination of the rate of profit?
In solidarity, Jerry
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