Re: [OPE-L] models with unequal turnover periods

[Fred Moseley <fmoseley@xxxxxxxxxxxxx>]

Quoting Ian Hunt <ian.hunt@xxxxxxxxxxxxxxx>:

> Dear Fred,
> With annual reporting, capitalists are certainly interested in the
> annual rate of profit. But would this not be the"weekly" rate of
> profit compounded? If thts i, would not the difference be merely one
> of presentation?


Hi Ian,

No, I don't think the difference is merely one of presentation.
The difference is one of DETERMINATION - how is the annual rate of
profit determined?

Is it determined by the ratio of the total annual profit to the total
annual capital invested (Marx)?

Or is it determined by the compounding of the "weekly" rate of profit,
which is itself determined simultaneously with "weekly" prices of
production, including the hypothetical "weekly" prices of production of
partially used machines and partially finished products
(Steedman/Sraffa)?

Which method of determination of the annual rate of profit seems the
more plausible to you (and others of course)?

Thanks.

Comradely,
Fred

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