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: PEN-L@SUS.CSUCHICO.EDU 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. >
