Re: [OPE-L] questions on the interpretation of labour values

[Diego Guerrero <diego.guerrero@xxxxxxxxxx>]

Title: Re: [OPE-L] questions on the interpretation of labour valu

Hi, Rakesh,

 

When I wrote my dissertation in 1988 I calculated the Spanish rate of profit dividing profits of a year by the stock of capital at the beginning of the year. But I also used a second quotient by dividing the same numerator by the capital at the middle of the year (reckoned as the average of its magnitude at the beginning and the end of the year). I don't see any practical reason to object this procedure. But this is done in this way because one only has annual data. If I had daily data, I think I would calculate an _instant_ rate of profit for a given day, so to say, using the quantities of labour necessary in that day for reproducing both the surplus product and the stock of capital.

 

I think that the correct procedure is to use replacement costs for all.

 

Cheers,

Diego

 

----- Original Message -----

From: Rakesh Bhandari

To: OPE-L@xxxxxxxxxxxxxxxx

Sent: Monday, March 05, 2007 11:12 PM

Subject: Re: [OPE-L] questions on the interpretation of labour values

 

ps Diego, still would like to hear your views on whether we should historical costs in the denominator of the profit rate and the replacement costs of constant capital in the numerator.