I think this part of the debate is going around in circles.  Can we move on?

On Sat, Jul 23, 2011 at 1:41 PM, Sandwichman <[email protected]> wrote:
> Surely, then you can riddle me this, then, Jim: didn't Harrod either
> explicitly or implicitly rely on Hicks's (The Theory of Wages, 1932)
> work-around of the difficulty posed by Chapman's equation, also acknowledged
> by Lionel Robbins ("The economic effects of variations of hours of labor,"
> 1929)?
>
> Because if he did, then his equation is only true in the sense that it
> assumes away the cases where it would be false. Since Hicks's work-around
> involved the assumption that unions would be strong enough to enforce
> work-time reductions by strike action in the event (not unlikely according
> to the Chapman theory) that the given hours of work were NOT optimal for
> output, it would be plausible to imagine that the Hicks assumption may not
> prevail in the U.S.A. today.
>
> If he didn't use Hicks's wriggle, how did he get around the problem of
> indeterminacy addressed by Hicks and Robbins? I also understand that Hicks
> later disavowed his 1937 mathematical interpretation of Keynes as too static
> and unhistorical. Does Hicks's disavowal have any effect on dynamic
> applicability of Harrod's equation?
>
> Or does the fact that it is part of Harrod's trump all questions about
> whether it is in fact static or dynamic.
>
>
> On Sat, Jul 23, 2011 at 12:34 PM, Jim Devine <[email protected]> wrote:
>>
>> Sandwichman <[email protected]> wrote:
>> > . I have constructed spreadsheets that use Chapman's theory to
>> > test the kind of hypotheses that Jim Devine appears capable of deciding
>> > by
>> > pulling answers out of the air: "if the productivity per hour of
>> > labor-power
>> > hired rises, in  situations of low aggregate demand such as the present
>> > capitalists will cut the number of hours of labor-power hired unless
>> > there
>> > is also an increase in demand and thus real production..."
>>
>> that's not "out of thin air." What I said was true by definition.
>>
>> in response, Tom writes:
>> >  This NOT true because it imposes a
>> > static short run constraint on a dynamic two-period model.
>>
>> that's not true. The equation is true whether it's a static short-run
>> story or a dynamic one. It's part of Harrod's theory of growth.
>>
>> > To put it in
>> > technical language, you are invoking not only the wages-fund doctrine
>> > but
>> > the Harriet Martineau/John Weston rendition of the wages-fund doctrine.
>>
>> this true-by-definition equation has nothing to do with Martineau or
>> Weston since it says nothing about wages or the wages fund.
>> --
>> Jim Devine / "Segui il tuo corso, e lascia dir le genti." (Go your own
>> way and let people talk.) -- Karl, paraphrasing Dante.
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>
>
> --
> Sandwichman
>
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

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