of particular importance i think were papers by Ochoa and Bienenfield, both in
the Cambridge Jl. of Economics.

-----Original Message-----
From: Andrew Hagen [mailto:[EMAIL PROTECTED]]
Sent: Friday, March 30, 2001 10:49 PM
To: [EMAIL PROTECTED]
Subject: [PEN-L:9859] Re: "Transformation problem" [was US Consume r
Confidence...]


On Fri, 30 Mar 2001 17:57:06 -0600, Forstater, Mathew wrote:

>I haven't been following this thread (multiple apologies), but what was wrong
>with Shaikh's solution? [....]

The New Palgrave entry on "Transformation Problem" argues that the solution
given in Shaikh's 1977 paper did 
not have total surplus value equal total profit. Additionally, the further
development in the 1984 paper is 
susceptible to criticism that it assumes balanced growth, which is fine for a
von Neumann system where that is 
an expected property, but not for "a real economy where balanced growth is not
satisfied." 

I'm not sure, but I think Shaikh and his students have probably improved his
theory since then, or addressed 
this criticism.

Andrew Hagen
[EMAIL PROTECTED]

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