I wrote:
>>My assertion wasn't based on Okishio or anything like that. It
was based on accounting. If input prices (per unit of output) fall
and output prices stay constant, profits rise.<<
Drewk writes:
>Right, Jim. But if *output* prices (per unit of output) fall and
*input* prices stay constant ....
>And the latter must always be the case *before* the former can be
the case. That's important.
>E.g., the price of machines falls during period t. ...<
but I made no reference to machines. I had written:
>> "But if labor productivity rises (or wages fall) before prices
fall, the first thing to happen would be a rise in the rate of
profit (likely temporary)."<<
Jim
