Page 18 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.73, # 1, 2016, pp. 4-37

addition, K. Marx had attached growth in labor production forces to that, in the
organic structure of capital. As regards this subject matter, V. I. Lenin had taken on
the dynamic changes in the organic structure of capital as the parameters of
regulating the reproduction processes.
In the mathematical model of A. Granberg, the ratio C:V has transformed into
an instrument of assessing the share of the regulatory impacts on the rates of
economic growth in both the two subsets [Granberg, A.,1985].
The role of the cost ratios is especially critical in the market economy
development because the major driving force of the market economy is the social
progress, driven by the advancements in science & technology. Further, V. I. Lenin
believed that the key regulators of the dynamics between subsets I and II are: the
progressive changes in the organic structure of the capital.
A. Granberg upon having studied the reproduction schemes of K. Marx and
V. I. Lenin, has developed the linear model with the exogenous dynamics of
consumption, suitable for analyzing the macroeconomic dynamics of the interactions
between the two subsets.
He has made an assumption (while making a reference to the well known text
book on political economy written by N. A. Tsagolev) that ―in the process of the
macroeconomic planning, the cost ratios are inferior to the ratios, determining
materials and things, thereby, these serve the purposes of materialization of the
latter‖ [Granberg, A.,1985]. He also considered that the production volume, under
subset I (Х 1), and subset II (Х 2), are in accordance with their previous terms, and,
thus, fully satisfy the equations of the Marxian reproduction schemes:
Х 1 = АY— С,
Х 2 = С.
A. Granberg has introduced new terms in developing his theory. So, let р 1 and
р 2 — be the growth rates of the products in subsets I and II; γ 1 and γ 2 — the shares
in subsets I and II be the growth rates of the gross domestic product (γ 1 + γ 2 = 1),
then:

Above all, A. Granberg has had an intention to answer the question posted by
R. Luxembourg and V. I. Lenin. That question had, at its times, become the core of
the disputes between Luxembourg and Lenin. Their differing views were on whether
the reproduction schemes would be suitable for assessing of the contribution made
by the scientific and technical progress.

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