calling in loans

[Michael Perelman]

Yes, many things are but most theories do not presume to prove efficiency.
All Sraffa was showing was that profits were indeterminate, and that with
a different profit rates, you get different prices.  No big deal unless
you buy into neo-classical orthodoxy.  More realistically, all sorts of
thing influence profit rates -- including the legal environment.

On Mon, Aug 26, 2002 at 06:44:39PM -0400, Doug Henwood wrote:
> No, I read the Cambridge Controversy book and some other stuff some 
> years ago. But I'm not persuaded that mutual determinations are 
> fatally flawed - aren't lots of things in social life like that?
> 
> Doug
> 
> Michael Perelman wrote:
> 
> >Wow. It took economists until 1960 to figure that out.  Well, Sraffa began
> >in the 20's but only published in 60.
> >
> >On Mon, Aug 26, 2002 at 06:26:38PM -0400, Doug Henwood wrote:
> >>  Michael Perelman wrote:
> >>
> >>  >The importance of reswitching is that it shows that the marginal
> >>  >productivity of capital is invalid as a macroeconomic concept.
> >>
> >>  Because of the circularity problem? How can the value of capital be
> >>  determined by the value of output, and simultaneously the value of
> >>  output by the value of capital?
> >>
> >>  Doug
> >
> >--
> >Michael Perelman
> >Economics Department
> >California State University
> >Chico, CA 95929
> >
> >Tel. 530-898-5321
> >E-Mail michael at ecst.csuchico.edu
> 

-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu