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Tag Archives: Joint Production

Extensive Rent For A Reswitching Example

Figure 1: Wage Curves and Rent1.0 Introduction I might as well illustrate an example with extensive rent and reswitching. I find it incredible that the agents in these sorts of models understand the implications of, say, a variation of the distribution of income for their self-interests. Nevertheless, I try to note the consequences of variation in the distribution of income and perturbations of model parameters on prices of production. And I do not worry too much about disequilibria. 2.0...

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Structural Dynamics With Extensive Rent

Figure 1: Variation in Switch Points with Time1.0 Introduction This post continues my effort to understand how fluke cases can partition parameter spaces in models of prices of production with extensive rent. Some background for this post is here, here, and here. 2.0 Technology The technology is described by the coefficients of production in Table 1. I assume that requirements for use are such that they cannot be satisfied by cultivating only two types of land. After fully cultivating...

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Fluke Cases for the Order of Fertility

Figure 1: Wage Curves for Fluke Case for r-Order of Fertility1.0 Introduction This post illustrates two fluke cases that can arise in a model with land and extensive rent. I call these a pattern of switch points for the r-order of fertility and a pattern of switch points for the w- order of fertility. I have previously described a fluke case in the order of rentability, which can be either over the wage axis or over the axis for the rate of profits. These fluke cases can arise in an...

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Flukes In A Modification Of An Example With Land

Figure 1: A Partition of a Slice of the Parameter Space1.0 Introduction This post presents another example from Woods (1990). It is a modification of this example. That previous example demonstrates that the order of fertility - the order in which lands of various types and that support different processes of production are taken into cultivation - varies with distribution. If the wage were different, the order of fertility could be different. Furthermore, the order of rentability - the...

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Does The Existence Of Wine Refute The Labor Theory Of Value?

[embedded content]Victor Magarino Debating "Ubersoy" On The Labor Theory Of Value The above is one in a series (Richard Wolff versus "Destiny", Slavoj Zizek versus Jordan Peterson) in which the pro-capitalist/anti-socialist side is represented by somebody seemingly almost completely ignorant of the topic they are pretending to discuss. Magarino needs a better interlocutor. I can find some related debates on YouTube with a more level playing field. That said, I think Magarino needs a...

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Flukes In An Example With Land

Figure 1: A Partition of a Slice of the Parameter Space1.0 Introduction This post tells a story in which owners of a certain type of land find the amount of their land needed to produce net output declines. Wages stay constant, and the rent for some landlords increases. This example is generalized from Woods (1990). 2.0 Technology This an example (Table 1) of a capitalist economy in which two commodities, iron and corn, are produced. One process is known for producing iron. In the iron...

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Three Mistakes Made By Marx

1.0 Introduction I have previously considered some points on which Marx is vulnerable. In this post, I mention three mistakes. I take the first from Joan Robinson and probably the second point too. I take the third from Ajit Sinha. The second is perhaps the least original. You can find lots of stupid stuff and nonsense about Marx. Pointing out these particular mistakes is beyond many. To have an opinion about these points, one must read Marx. One might even accept that Marx is mistaken...

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Fluke Switch Points in Pure Fixed Capital Systems

I have a working paper at the Centro Sraffa. Abstract: This article considers structural economic dynamics, in models with fixed capital and a choice of technique, of the production of commodities. Fluke switch points are described and cataloged. For fluke switch points, parameter perturbations create a qualitative change in how the choice of technique varies with distribution. Techniques are presented for visualizing partitions of parameter spaces such that the analysis of the choice of...

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The Tractor-Corn Model: A Start

1.0 Introduction In my ROBE article, I consider fluke switch points arising from perturbations of coefficients of production in the Samuelson-Gargenani model, but in the case with only circulating capital. An obvious generalization is to consider fixed capital. This generalization is simplified by restricting oneself to the case in which machines operate with constant efficiency. Steedman (2020) analyzes this case, and this post is a start on working through elements of the corn-tractor...

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The Truncation Of The Economic Lives Of Machines

'Paradoxes' and 'Perversities' PhenomenonExampleRegionReswitching'One good'5Schefold reswitching3Schefold roundabout3Baldone8Recurrence of technique (without reswitching)Baldone9Recurrence of truncation (without reswitching or recurrence of technique)Two sectors with fixed capital2Non-monotonic variation of economic life of machine (without reswitching or recurrence of technique or of truncation)Baldone10'Non-continuous' variation in economic life of machine associated with infinitesimal...

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