>But Mat you invoke two different factors here: inter capital rivalry
>and wage pressure both compel labor saving technological change.
yes.
>This leads to what is called the Okishio Theorem
I assume you are familiar with Shaikh's "Political Economy and Capitalism" Cambridge Journal of Economics, Vol. 2, 1978, and the (CJE, 1979) reactions to that and Shaikh's (1980) reply?
Also, Rosdolsky is characteristicly good on FROP.
Best,
mat