Re: [OPE-L] Sraffa's Contribution to Marxian Political Economy

[Pen-L Fred Moseley <fmoseley@xxxxxxxxxxxxx>]

Quoting Rakesh Bhandari <bhandari@xxxxxxxxxxxx>:

> > Hi. Solow criticized the assumption of equal rates of SV, on the ground
> > that there is no mechanism that can bring about that equalization. He
> > contrasted that case with the equalization of profit rates, which, in the
> > absence of impediments to the movement of capital, is brought about by
> > intersectoral capital flows.
>
> Solow's criticism is trivial, but I suppose his every utterance must be
> taken seriously.  Marx assumes equalized s/v for no reason other than
> convenience of calculation in his transformation.


I agree with Rakesh that Marx's assumption of equal rates of
surplus-value is merely a simplifying assumption, and is in no way
essential.

It is strange that Solow would focus on this trivial point.  I wonder
if Solow brought this up, or was responding to someone else's comment
about equal rates of surplus-value?

Comradely,
Fred

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