Not really. The Cambridge Capital Controversy has to do with a static model in which different rates of profit/wage rates change relative prices.
On Mon, Jan 17, 2005 at 09:44:39PM -0000, Daniel Davies wrote: > this is the Cambridge Capital Controversy in disguised form. You can't get > any general equilibrium theory of prices off the ground unless you are > either prepared to take a rate of profit as given, or take a schedule of > prices of capital goods as given. Otherwise, you have no numeraire with > which to make any aggregations of the capital stock. > > innit? > > dd > > -----Original Message----- > From: PEN-L list [mailto:[EMAIL PROTECTED] Behalf Of michael > perelman > Sent: 17 January 2005 21:24 > To: [email protected] > Subject: Re: power > > > The problem with Jim's e-bay solution has to do with the timing. I am > doing a job with a new computer this year. The formal algebraic theory > says that I depreciate x from the computer today to account for the > value transferred to the commodity. To make the correct calculation, I > would need to know e-bay prices in the future. > > > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
