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I have a working paper.
Abstract: This article extends to unequal rates of profits a derivation of prices of production from a linear program. A partition of the price-wage space is illustrated in an example with two produced commodities. The variation in the solution of the LP with perturbations of relative markups is illustrated. This analysis provides an intuitive explanation of how the reswitching of techniques and of how capital reversing can emerge in non-competitive markets.
One could see individual input or process recurrence as how a uniform rate of profits starts to diverge to non-uniform rates.
ReplyDeleteI would like to know how you can justify the relationship between the markups. In other papers of your a fixed relationship between markups was set in order to have one <1 and the other >1. As we see here that fixed relationship has banished.
ReplyDeleteI think my graph above works for (s2/s1. Maybe I should rewrite the paper to make that clear. I struggle with the degree of freedom introduced by only specifying the ratios between markups.
ReplyDelete