A Look at Leninism by Ron Taber

By Ron Taber

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By Ron Taber

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19) s AD t t-1 t-k ~L ~.!.... 19) we can determine variables r, w, t, Y and W. 8. 9 hold. 8 which excludes circular production is dropped. An example for circularity as it is used here would be grain used as seed in a following period. Model IV is based on a continuous-input-continuous-output technology. Endeavors at one point are in part responsible for all following returns while the returns at a given moment are the result of all previous endeavors. Gross national product yB equals producer and interest income plus the value of those consumption goods which re-enter the production process as factors.

E. 3' (ii) insures that each good can be produced. The second condition becomes more comprehensible when it is realized that the von Neumann-model knows no resources and that, therefore, all goods must be produced within the system. Von Neumann further assumes that the length of production of each activity is equal to one unit of 42 time. Processes of longer duration are divided into several individ- ual processes; in this way intermediate products can be introduced 1 as separate goods. Von Neumann's approach allows us to solve a complicated problem of capital theory elegantly.

29]) that the structure of von Neumann's model is more-encompassing than those of the von Bohm-BawerkWICksell systems. Under certain circumstances the von Neumann-model can be given an Austrian, intertemporal interpretation. Burmeister [1974] showed this for a generalized von Neumann-model in which one primary factor, labor, and one consumption good are explicitly considered. Burmeister's conclusion goes even further in that he demonstrates that an intertemporal interpretation of this type can under certain conditions also be applied to the technology of Hicks'[1973] model, which encompasses the Austrian approach.

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