[PEN-L:4868] Re: profit-rate equalization

["Eric Nilsson" <enilsson@xxxxxxxxxxxxxxx>]

In response to Doug H:
   >Despite the deregulation of the markets and a furious
   >pace of transactions . . . Profit rates were as dispersed
   >as ever at the end of the decade as at the beginning.

Jim D wrote,
  >Just because capitalism involves a tendency for profit
  >rates to equalize between sectors (in the absense of
  >barriers to mobility) doesn't mean that profit rates
  >actually equalize.

But I don't think Doug was claiming profit rates should
equalize, merely that the variance of profit rates should fall.

Of course, maybe all things were not equal during the
time period of the study -- perhaps other variance-increasing
forces appeared to counteract deregulation, etc.  Perhaps
an increased tolerance by the executive branch of monopoly
and collusion played a role.



Eric Nilsson
Department of Economics
California State University
San Bernardino, CA 92407
enilsson@xxxxxxxxxxxxxxx