Wednesday, October 5, 2016

Rectilinear hyperbola rK = S or ADD elementary tom foolery

We have S solve for r and K

We get a rectilinear hyperbola
Infinite ..uncountable infinite ... Combinations of r and K
Significance ?

One of our pair of evils without the other
tells us nothing about S
Knowing S tells us nothing about r and K individually

Secondary asset markets smooth out actual firm by firm rates of return
More or less
Here comes the rectilinear hyperbola into focus

Now add nominal versus real.
I versus r

Now we got a path of price level changes to contend with

Change the subject

What about knowing e
The rate of surplus value ?

As reflected darkly  thru the wage / gross profit split

Nb
Not Versus the wage / gross product split

Consider labor productivity is gross product / hours   Value added per hour

Nb
Value added here
in Marxian terms would be value added by labor plus value transferred from commodities consumed
In production