tag:blogger.com,1999:blog-7225373.post3880136318547723624..comments2024-02-29T03:34:23.190-05:00Comments on Who Were the Sea Peoples?: Cost of production theories of valuegcallahhttp://www.blogger.com/profile/10065877215969589482noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-7225373.post-89177029828148513702013-06-14T10:03:10.229-04:002013-06-14T10:03:10.229-04:00Agreed. I was being a bit flippant earlier.
I...Agreed. I was being a bit flippant earlier. <br /><br />I do see that marginalist theory is not really a "cost of production theory of value" but rather a theory that explains how the costs of production are derived. .robhttps://www.blogger.com/profile/04682517711551179057noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-60028889855563864992013-06-14T09:57:13.278-04:002013-06-14T09:57:13.278-04:00I haven't read your article Bob. I think Bohm...I haven't read your article Bob. I think Bohm-Bawerk's article "Value, Cost and Marginal Utility" is good on this.<br /><br />http://mises.org/journals/qjae/pdf/qjae5_3_5.pdf<br />Currenthttps://www.blogger.com/profile/08645195276844244481noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-68216183501171808822013-06-13T20:25:04.124-04:002013-06-13T20:25:04.124-04:00"So cost of production as a price floor must ..."So cost of production as a price floor must enter into the equation"<br /><br />If I can only jump 10 feet horizontally, i will not try to jump across an 11 foot chasm. That does not mean the distance I can jump is determined by chasms. gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-77312508554830154432013-06-13T20:23:37.653-04:002013-06-13T20:23:37.653-04:00And besides Rob, a notorious difficulty with cost ...And besides Rob, a notorious difficulty with cost of production theories of value is that they have a lot of trouble explaining the value of the costs of production! On the other hand marginalist theory has no such difficulty: the value of the factors of production flows from the value of the final products they will produce.gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-54363442562001767922013-06-13T18:30:58.832-04:002013-06-13T18:30:58.832-04:00" but it seem kind of odd to exclude the one ..." but it seem kind of odd to exclude the one theory that seems to best explain the cost of production from the set of cost of production theories."<br /><br />But... I am not talking about explaining the cost of production! I am talking about explaining value.gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-58585598069504891832013-06-13T18:17:24.839-04:002013-06-13T18:17:24.839-04:00Fair enough, but it seem kind of odd to exclude ...Fair enough, but it seem kind of odd to exclude the one theory that seems to best explain the cost of production from the set of cost of production theories.robhttps://www.blogger.com/profile/04682517711551179057noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-57856736886836755862013-06-13T15:56:42.504-04:002013-06-13T15:56:42.504-04:00At the risk of immodesty, Gene, you might want to ...At the risk of immodesty, Gene, you might want to read <a href="http://mises.org/journals/jls/20_1/20_1_3.pdf" rel="nofollow">my critique of cost theories of value</a> if you've never done it before.Bob Murphyhttps://www.blogger.com/profile/04001108408649311528noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-73720132839991513052013-06-13T15:35:58.548-04:002013-06-13T15:35:58.548-04:00Cost of production theories do not claim to be uni...Cost of production theories do not claim to be universal. Hicks, for example, always recognised flexprice and fixprice markets.<br /><br />In the example you give of course the price of gold is not really based on the man's labour or capital goods bill (his tools and transport and food, I suppose), but set on a larger market and demand and supply have much to with it.<br /><br />But how credible is the "prospecting" example for how most gold is produced these days?<br /><br />Gold is mostly mined on an industrial scale these days and is very capital-intensive, with a serious wage bill too. So cost of production as a price floor must enter into the equation, even though gold is one of those highly speculative assets, whose price fluctuates.<br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-29792180430013908332013-06-13T15:29:34.420-04:002013-06-13T15:29:34.420-04:00Me, I just define it the way Economists do. Me, I just define it the way Economists do. gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-4956839190959583022013-06-13T14:57:54.927-04:002013-06-13T14:57:54.927-04:00Seems like that would depend upon how you define ...Seems like that would depend upon how you define a "a cost of production theory of value" <br /><br />The wikipedia article is quite informative:<br /><br />http://en.wikipedia.org/wiki/Cost-of-production_theory_of_valuerobhttps://www.blogger.com/profile/04682517711551179057noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-32907669246791286292013-06-13T14:19:58.438-04:002013-06-13T14:19:58.438-04:00Rob, Marginal value theory has no difficulty in ex...Rob, Marginal value theory has no difficulty in explaining why prices tend towards the cost of production. That is not a cost of production theory of value, however. gcallahhttps://www.blogger.com/profile/10065877215969589482noreply@blogger.comtag:blogger.com,1999:blog-7225373.post-12500145627778729842013-06-13T13:35:07.161-04:002013-06-13T13:35:07.161-04:00Well , the gold ring could well end up selling at ...Well , the gold ring could well end up selling at price of gold used + price of labor used + profit markup. So that would be the "cost of production" and economics provides a theory for why there is tendency for this be the case. <br /><br />You would then need a separate theory to explain the price of gold and price of labor (the original factors of production). Economics has quite a good theory for that too.robhttps://www.blogger.com/profile/04682517711551179057noreply@blogger.com