The measurement of the capital stock is in impossibility.  Franklin Fisher
once worked up the requirements for aggregation.  Can't be done!

The inability to calculate real depreciation presents another barrier.

I mentioned this in passing before in questioning how seriously we should
take estimates of profit rates as anything more than a rough rule of
thumb.

On Wed, Feb 06, 2002 at 04:59:36PM -0000, Davies, Daniel wrote:
> 
> >I don't accept GET. I'm basically a Robinsonian/Kaleckian institutionalist 
> >with a large dash of Austrian thrown in for spice.
> 
> Must make for some interesting dinner parties ....
> 
> But I don't see how saying "I'm an institutionalist" gets you off the hook
> here.  That's not a value theory, and neither Robinson nor Kalecki have
> either a way of telling us how to measure the capital stock without a value
> theory, or a value theory which is not fundamentally the equivalent of the
> LTV (I accept your point about a glass being half-empty or half full, but
> surely to heavens, any theory which accepts that value is only produced by
> labour is a labour theory of value; I've never understood why Robinson
> claimed that she didn't accept LTV).
> 
> And in the context of capital and value theory , "Austrian" isn't a dash of
> spice; it's arsenic soup.  It's a marginal theory of value, which hangs you
> right back on the hook that you got off with general equilibrium.
> 
> I'm sure I don't understand your position properly, and I bet that reading
> those two papers will help.  But I think it's clear that there are many good
> technical reasons to suppose that economics needs *some* value theory, and
> the labour theory of value shapes up pretty well compared to the
> competition.
> 
> dd
> 
> 
> 
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA 95929

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