calling in loans

Michael Perelman michael at ecst.csuchico.edu
Mon Aug 26 15:03:24 PDT 2002


The importance of reswitching is that it shows that the marginal productivity of capital is invalid as a macroeconomic concept. As a result, neoclassical economics has no theory of profit.

Doug Henwood wrote:


> Bradford DeLong wrote:
>
> >I'm still mulling over whether "reswitching" and associated
> >Cambridge stuff that is barely less deadly than the transformation
> >problem is an important critique of Solow, or the equivalent of
> >Giffen goods. I mean, you need a *really* weird cash flow profile
> >for "reswitching" to become relevant, don't you?
>
> I once tried earnestly to comprehend the reswitching debate, but it
> seemed obscure and scholastic (in the bad sense) - pretty much the
> same reaction I have to the transformation problem. Am I missing
> something?
>
> Doug

--

Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901



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