Reinvestment of Value Released by Technical Change

Determine whether the value released by technical change, through the lowering of the value of committed productive capital, can be reinvested at the prevailing profit rate, and identify feasible and realizable accumulation outlets outside the model’s capital-adjustment rule.

Background

The model finds that technical change can reduce the value of committed productive capital, producing a release of capital even when physical output increases. Intersectoral capital flows redistribute this reduced total, but the model does not specify what happens to the released value after the simulated adjustment process.

Whether this released value can be reinvested at the prevailing profit rate depends on accumulation outlets that are both technically feasible and capable of being realized. Because the model excludes those outlets and does not simulate accumulation beyond the adjustment rule, the reinvestment question remains unresolved.

References

The model does not determine whether the released value can be reinvested at the prevailing profit rate; that depends on feasible and realizable accumulation outlets outside the adjustment rule.

— On dynamic price formation in the course of capital reallocation driven by differential rates of profit: strict conservation of value supports Karl Marx's theory  (2609.29346 - Ankri et al., 24 Sep 2026) in Section 5.5, “Scope and Limitations,” p. 30