Let me paraphrase Jim Devine in neoclassical terms (find the differences):
"try selling it on e-Bay! Then, following Keynes' method, state the price in wage-units. However, that would only indicate its exchange-value (in terms of marginal utility/marginal productivity commanded). You could also make an old PC from old parts to get an estimate of its marginal utility / marginal productivity. Since the main problem with PCs is "moral depreciation" rather than physical depreciation (after the first 90 days or so) that would give a first-guess of the PC's marginal utility / marginal productivity."
I just wonder how we can tell the two stories apart.
(Many theories can be use without measurement. The question is whether we can claim that something can and cannot be measured at the same time.)
Jonathan Nitzan http://www.bnarchives.net
Devine, James wrote:
Michael Perelman asks: >Jim, how would you calculate the reproduction cost of a 2 year old computer, even in theory? <
try selling it on e-Bay! Then, following Keynes' method, state the price in wage-units. However, that would only indicate its exchange-value (labor-commanded).
You could also make an old PC from old parts to get an estimate of its Value. Since the main problem with PCs is "moral depreciation" rather than physical depreciation (after the first 90 days or so) that would give a first-guess of the PC's value.
We agree, however, that we >can use the theory even without measurment. <
Jonathan N. disagrees.
JD
