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Τhe evolution of the rate of profit reflects both changes in income distribution and technical conditions of production. The purpose of this paper is to present estimates of the rate of profit for the Greek economy using input-output data...more

Τhe evolution of the rate of profit reflects both changes in income distribution and technical conditions of production. The purpose of this paper is to present estimates of the rate of profit for the Greek economy using input-output data spanning the period 1988-1997 and, at the same time, ...

In recent years, we are witnessing renewed interest in the capital theory controversies, in which the empirically found near-linearities of the price-rate of profit and wage-rate of profit curves take centre stage. This article argues...more

In recent years, we are witnessing renewed interest in the capital theory controversies, in which the empirically found near-linearities of the price-rate of profit and wage-rate of profit curves take centre stage. This article argues that these near-linearities are resulting from the low effective rank property characterizing the economy’s system matrices of technological coefficients. The implication is that it takes only a few eigenvalues and respective eigenvectors for an adequate representation of the movement of prices consequent upon changes in income distribution. Furthermore, a low-dimensional system may compress some of the characteristic features of the economy. JEL Classifications: B24, B51, C67, D46, D57, E11, E32

This article, by utilizing Ricardo’s numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive...more

This article, by utilizing Ricardo’s numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive variables (rate of profit and wage) and production (turnover) times. Furthermore, Ricardo argued that the intertemporal changes in relative (market) prices were no different from the respective changes in natural (or equilibrium) prices. Both depend primarily on changes in unit labor values and secondarily on capital intensities. The article continues by testing the extent to which Ricardo’s thesis holds by utilizing input-output data from the US and Chinese economies. The derived empirical results lend overwhelming support to Ricardo’s thesis, which is conformable with major aspects of Marx’s theory of value.

rente. Cet article propose une lecture marxiste du sens et des enjeux de ces mutations. L'analyse s'articulera en deux parties. Dans la première partie, nous revenons tout d'abord sur la définition marxienne du salaire, de la rente et du...more

rente. Cet article propose une lecture marxiste du sens et des enjeux de ces mutations. L'analyse s'articulera en deux parties. Dans la première partie, nous revenons tout d'abord sur la définition marxienne du salaire, de la rente et du profit. Puis nous portons notre attention sur certains développements de Marx dans le Livre III du Capital lorsqu'il ébauche une théorie du devenir rente du capital, théorie qui peut être mise en relation et donner un éclairage nouveau à l'actualité de l'hypothèse du general intellect. Sur cette base théorique, dans la deuxième partie, nous développons une analyse des transformations du rapport capital-travail qui, dans la transition du capitalisme industriel vers le capitalisme cognitif, ont conduit à la fois à

Resumen En este presente artículo, se refuta desde una crítica matemática y lógica las objeciones planteadas por Álvaro Romaniega a la TSSI (Temporal Single-System Interpretation) formulada por autores como Kliman, Freeman y McGlone....more

Resumen En este presente artículo, se refuta desde una crítica matemática y lógica las objeciones planteadas por Álvaro Romaniega a la TSSI (Temporal Single-System Interpretation) formulada por autores como Kliman, Freeman y McGlone. Exponiendo algunas falacias lógicas que representan un marco metodológico incorrecto, ilógico e incoherente, en tenor a las propuestas del TSSI, dentro del contexto previo de la crítica a la economía política capitalista de Karl Marx, desde los albores del socialismo científico.

This article, by utilizing Ricardo’s numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive...more

This article, by utilizing Ricardo’s numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive variables (rate of profit and wage) and production (turnover) times. Furthermore, Ricardo argued that the intertemporal changes in relative (market) prices were no different from the respective changes in natural (or equilibrium) prices. Both depend primarily on changes in unit labor values and secondarily on capital intensities. The article continues by testing the extent to which Ricardo’s thesis holds by utilizing input-output data from the US and Chinese economies. The derived empirical results lend overwhelming support to Ricardo’s thesis, which is conformable with major aspects of Marx’s theory of value.

This is an open access chapter distributed under the terms of the cc by-nc-nd 4.0 license. chapter 2 Marx's conceptualisation of value in Capital 2019 article, originally published in The Oxford handbook of Karl Marx, edited by Matthew...more

This is an open access chapter distributed under the terms of the cc by-nc-nd 4.0 license. chapter 2 Marx's conceptualisation of value in Capital 2019 article, originally published in The Oxford handbook of Karl Marx, edited by Matthew Vidal, Tony Smith, Tomás Rotta and Paul Prew, Oxford: Oxford University Press, pp. 129-50. (In the printed handbook version, the internal cross-references are mixed up, because the copy-editor numbered the Introduction without changing the cross references accordingly -the digital version is ok.)

The present paper on the now partly well known Russian mathematician and "amateur economist" v. Charasoff was originally written in 1987 together with H. Duffner three years after Charasoff's remarkable contribution of 1910 "Das System...more

The present paper on the now partly well known Russian mathematician and "amateur economist" v. Charasoff was originally written in 1987 together with H. Duffner three years after Charasoff's remarkable contribution of 1910 "Das System des Marxismus" (The system of Marxism) had been rediscovered by the Italian economists Gilibert and Egidi. It was then the second mathematical formulation of Charasoff's contribution on prominent but partly still unresolved topics in Marxian economics. However, though our paper circulated as mimeo it had not been published in a regular journal of economics. Meanwhile, several contributions on Charasoff appeared by such authors as Egidi, Gilibert, Kurz and Salvadori, Stamatis and Mori. But none of them seems to deal with Charasoff's economics in an exhaustive manner. Therefore and nevertheless, the paper may be still of some interest to the, nowadays regrettably rather narrow, audience of economists specialized in linear models of production, Marxian economic theory and Neoricardianism.

The present paper on the now partly well known Russian mathematician and "amateur economist" v. Charasoff was originally written in 1987 together with H. Duffner three years after Charasoff's remarkable contribution of 1910 "Das System...more

The present paper on the now partly well known Russian mathematician and "amateur economist" v. Charasoff was originally written in 1987 together with H. Duffner three years after Charasoff's remarkable contribution of 1910 "Das System des Marxismus" (The system of Marxism) had been rediscovered by the Italian economists Gilibert and Egidi. It was then the second mathematical formulation of Charasoff's contribution on prominent but partly still unresolved topics in Marxian economics. However, though our paper circulated as mimeo it had not been published in a regular journal of economics. Meanwhile, several contributions on Charasoff appeared by such authors as Egidi, Gilibert, Kurz and Salvadori, Stamatis and Mori. But none of them seems to deal with Charasoff's economics in an exhaustive manner. Therefore and nevertheless, the paper may be still of some interest to the, nowadays regrettably rather narrow, audience of economists specialized in linear models of production, Marxian economic theory and Neoricardianism.

In this book Ernesto Screpanti provides a rigorous examination of Marx’s theory of exploitation, one of the cornerstones of Marxist thought. With precision and clarity, he identifies the holes in traditional readings of Marx’s theory...more

In this book Ernesto Screpanti provides a rigorous examination of Marx’s theory of exploitation, one of the cornerstones of Marxist thought. With precision and clarity, he identifies the holes in traditional readings of Marx’s theory before advancing his own original interpretation, drawing on contemporary philosophy and economic theory to provide a refreshingly interdisciplinary exegesis. Screpanti’s arguments are delivered with perspicuity and verve: this is a book that aims to spark a debate. He exposes ambiguities present in Marx’s exposition of his own theory, especially when dealing with the employment contract and the notions of ‘abstract labor’ and ‘labor value’, and he argues that these ambiguities have given rise to misunderstandings in previous analyses of Marx’s theory of exploitation. Screpanti’s own interpretation is a meticulously argued counterpoint to these traditional interpretations.

The question of the long-run prospects of profitability and its association with the stage of capital accumulation have occupied central importance in the history of economic thought. This paper focuses on Marx and Keynes and argues that...more

The question of the long-run prospects of profitability and its association with the stage of capital accumulation have occupied central importance in the history of economic thought. This paper focuses on Marx and Keynes and argues that Marx’s analysis, despite its incomplete nature, is logically consistent in both explaining the falling tendency of the rate of profit as well as the precise mechanism that leads the economy to its crisis stage. Keynes’s analysis, although sketchy, has more in common with Marx and Smith than with Ricardo and neoclassical economics. Furthermore, Keynes’s views on effective demand and the way in which it affects profitability and capital accumulation might be gainfully used for the formulation of a more advanced theory to explain and at the same time direct, within strictly defined limits, the dynamics of capitalist economies.

This paper presents estimates of labor values and prices of production following two approaches: The first, based on the classical and Marxian theory of value and distribution; while, the second is based on the so-called new solution to...more

This paper presents estimates of labor values and prices of production following two approaches: The first, based on the classical and Marxian theory of value and distribution; while, the second is based on the so-called new solution to the transformation problem and its variant the Temporary Single-System Interpretation (TSSI). The major advantage of the latter approach is its simplicity along with the relatively low data requirements. Our empirical findings from the economies of China, Japan and South Korea suggest that both approaches give estimates of labor values and prices of production which are extremely close to each other as well as to actual market prices. On further examination, however, we conclude that our empirical findings are absolutely consistent with the theoretical requirements of the classical approach and contradict those of the TSSI.

This paper extends the empirical analysis of the labor theory of value using input-output data from the Korean Economy for the years 1995 and 2000. The results of the analysis suggest that the Korean economy displays similarities with a...more

This paper extends the empirical analysis of the labor theory of value using input-output data from the Korean Economy for the years 1995 and 2000. The results of the analysis suggest that the Korean economy displays similarities with a number of other economies a s regards to the proximity of labor values, Sraffian prices and prices of production to actual market prices. Furthermore, our findings of the wage-profit rates frontiers for the Korean Economy for the years 1995 and 2000 preclude the case of reswitching of techniques. This result lends additional support to the labor theory of value a s an analykal tool for the understanding of the laws of motion of modem economies.

Many empirical studies indicate that the deviations of actual prices of production from labour values are not too sensitive to the type of measure used for their evaluation. This paper attempts to theorize this rather 'stylized fact' by...more

Many empirical studies indicate that the deviations of actual prices of production from labour values are not too sensitive to the type of measure used for their evaluation. This paper attempts to theorize this rather 'stylized fact' by focusing on the relationships between the traditional and the numéraire-free measures of deviation. On the empirical side, it provides an illustration of these relationships using inputoutput data from the Greek and Japanese economies.

Bródy"s conjecture is submitted to an empirical test using input-output flow data of varying size for the US economy for the benchmark years 1997 and 2002, as well as for the period 1998-2010. The results suggest that the ratio of the...more

Bródy"s conjecture is submitted to an empirical test using input-output flow data of varying size for the US economy for the benchmark years 1997 and 2002, as well as for the period 1998-2010. The results suggest that the ratio of the modulus of the subdominant eigenvalue to the dominant one increases both with the size of the matrix and, for the same matrix size, over the years lending support to the view of increasing instability (in the sense of Bródy) for the US economy over the period 1997-2010.

This paper explores the relationship between labour values, prices of production and changes in income distribution. For this purpose we use a linear model of production and circulating capital assuming that wages are paid ex ante. On the...more

This paper explores the relationship between labour values, prices of production and changes in income distribution. For this purpose we use a linear model of production and circulating capital assuming that wages are paid ex ante. On the basis of this model and actual data from input-output tables of the Greek economy for the period 1988-1997 we estimate the labour values and prices of production, which are normalized with the use of the Sraffian standard commodity and the actual output vector. Furthermore, we extend Steedman's polynomial approximation of prices of production to include the case where wages are paid ex ante and the accuracy of this approximation is tested with actual inputoutput data. We find that prices of production change as a result of changes in income distribution more often than not in a monotonic way and in a few cases display curvatures, which reverse the order between prices of production and values. The consistency of the results over the years leads us to the idea that there might be some regularity, which we identify in the relationship between the standard ratio of the economy and the vertically integrated technical coefficients of production of each individual industry.

This research was conducted in supermarkets and minimarkets in the Malang Raya area, East Java, specifically in Malang City from June 2023 to December 2023. Primary data collection in this research was carried out using a survey method...more

This research was conducted in supermarkets and minimarkets in the Malang Raya area, East Java, specifically in Malang City from June 2023 to December 2023. Primary data collection in this research was carried out using a survey method via questionnaires given to 200 respondents. The sampling technique uses a non-probability approach using Accidental Sampling. Statistical analysis includes reliability tests, classical assumption tests, and multiple regression tests. The aim of this research is to identify variables that influence purchasing decisions for processed honey products, including store image, product attributes, product price, age, education level and income. From the research conducted, it is known that consumers are mostly women aged 30-40 years with a Bachelor's degree, most of whom work as civil servants and have a monthly income or allowance of approximately >Rp. 4,000,000. The results of multiple regression analysis show that the store image variable with indicators of product choice, the product attributes variable with indicators of brand, packaging, halal labeling, and the product price variable with indicators of price affordability, suitability of prices with product attributes, and also price comparison have a significant influence. on the decision to purchase honey variant products in Malang Raya, especially in Malang City, because it has a significance value <0.05.

This article presents a critique of the solution of the Temporal Single System Marxism (TSS) for the problem of transforming values into prices, which establishes that values and prices are simultaneously determined in a sucession of...more

This article presents a critique of the solution of the Temporal Single System Marxism (TSS) for the problem of transforming values into prices, which establishes that values and prices are simultaneously determined in a sucession of periods of production and circulation; the value transferred by constant and varaible capital are not equal to the value of the goods they purchase but to the value of the money used to purchase these goods; and money represents a definite number of labor hour. It shows that the TSS does not go beyond Samuelson-Steedman's criticism, according to which values and prices are separately determined. In their attempt to salve "Marx's lemma", the defenders of this approach re-read Mar's Capital, discharging the long run equilibrium method, adopting an ideal concept of money in the place of commodity-money, abandoning the axiom that value is not generated in circulation and breaking with the structural logic of Capital. Despite criticizing the traditional usage of simultaneous equations to deal with the transformation question, they end up generating simultaneous equation that converge towards the tradicional long-run equilibrium positions.

This paper revisits an old question: can surplus value rate compensate for the falling tendency of the rate of profit or, on the contrary, does the increasing technical composition of capital imply a tendency of the profit rate to fall...more

This paper revisits an old question: can surplus value rate compensate for the falling tendency of the rate of profit or, on the contrary, does the increasing technical composition of capital imply a tendency of the profit rate to fall regardless of the surplus value rate? If the latter is the answer, serious theoretical implications emerge. Some aspects of these implications are examined in the following analysis.

Este artigo examina o estatuto metodológico da transformação de valores em preços. Para tanto, resgata a evolução da dialética, que se tornou método com Platão, assumiu a forma de sistema de demonstrações necessárias que partem dos...more

Este artigo examina o estatuto metodológico da transformação de valores em preços. Para tanto, resgata a evolução da dialética, que se tornou método com Platão, assumiu a forma de sistema de demonstrações necessárias que partem dos princípios incondicionados alcançados através da synagoge com Aristóteles e de lógica do Espírito Absoluto com Hegel. Invertendo a dialética hegeliana, Marx concebe a dialética como a lógica da realidade objetiva reproduzida pela razão. Em particular, na dialética de O Capital, mostra como, na sequência do desdobramento da mercadoria, ponto de partida da exposição (Darstellung) do capitalismo, a transformação dos valores em preços surge necessariamente como o momento do aparecer da essência do capitalismo (o trabalho abstrato) no âmbito do fenômeno. Com os preços de produção, encerra-se a explicação racional da realidade efetiva (Wirklichtkeit), concebida como emergência da essência ao nível do fenômeno, englobando o âmbito da acidentalidade, inescapável ...

Este artigo procura demonstrar que, apesar dos erros de Marx, a lei do valor possui caráter axiomático e representa fundamento necessário para o sistema de preços de produção, dando conta do duplo caráter das mercadorias, que, se custam...more

Este artigo procura demonstrar que, apesar dos erros de Marx, a lei do valor possui caráter axiomático e representa fundamento necessário para o sistema de preços de produção, dando conta do duplo caráter das mercadorias, que, se custam capital para os capitalistas, custam trabalho tanto para os trabalhadores quanto para a sociedade como um todo. Demonstra-se que é através da teoria do valor-trabalho que a economia se transforma em sistema científico, que não pode admitir hipóteses não-demonstradas. Prescindir dela significa romper com o princípio da autofundamentação da ciência, formulado claramente em O Capital, que tem como ponto de partida a mercadoria, tomada como imediato concreto, e ponto de chegada a mesma mercadoria, concebida como produto do capital. Significa abrir mão do princípio unificador da economia clássica em favor de teorias que representam verdadeiras colchas de retalho, costuradas a partir de hipóteses graciosas, tais como a de que as empresas maximizam lucros e a de que os empresários acumulam capital. Mostra-se que a proposta neo-ricardiana de se obter a taxa de lucro e os preços diretamente dos "coeficientes técnicos de produção" e do salário real, ao omitir a duração da jornada e a intensidade do trabalho, para não falar do conteúdo sociológico do salário real, equivale a escamotear sumariamente o conteúdo social incorporado nessas variáveis, a começar pela exploração do trabalho. Finalmente, a teoria do valor-trabalho permite não apenas derivar todas as categorias econômicas presentes na economia de mercado (preços de mercado; preços de produção; salário, lucro e taxa de lucro, juro e taxa de juros, renda da terra, preço do solo e dos ativos financeiros, etc), mas também dá conta da economia mercantil simples, de modo que abandoná-la equivale a renunciar a uma teoria geral das economias de mercado. Palavras-chave: problema da transformação; valor-trabalho; preços de produção; neo-ricardianismo; teoria do valor; valor e distribuição.

This thesis is a contribution to recent debates on the labour theory of value (LTV). It builds upon two distinctive features of the LTV; first, the categories used in the inquiry are historically determined modes of existence of...more

This thesis is a contribution to recent debates on the labour theory of value (LTV). It builds upon two distinctive features of the LTV; first, the categories used in the inquiry are historically determined modes of existence of capitalist social relations; second, it rejects equilibrium as the organizing principle of the investigation. Six issues are analysed in the light of these elements and the previous literature. First, the relationship between dialectical logic and the LTV is addressed through an evaluation of the &#39;new dialectics&#39;. This approach to Marx&#39;s method understands the LTV as a systematic dialectical theory, whose aim is the reconstruction in thought of the main characteristics of capitalism. Second, the relationship between labour and value is assessed through the real processes that determine value and price, the normalization, synchronization and homogenization (NSH) of labour. Three well-known views of the LTV are assessed in this light; the tradition...

The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating...more

The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating economic phenomena. In this respect macroscopic phenomena, which include many distinct production processes evolving over long gestation periods, conceal the transformation of labour values into their monetary expression (prices). Consequently, the use of the LTV on a grand and dynamic scale is usually considered inapplicable in the construction of macroeconomic models. The classical/Marxian analysis is conducted through either multidimensional multi-sectoral models or the solution of the summation problem of heterogeneous commodities. However, many studies have corroborated the dynamic aspects of the LTV and probed for a reduction in the dimensionality of macroeconomic models. In this paper, on the one hand, we restate the dynamic aspects of the LTV over time and, on the other hand, ascertain its utility as a long-run macroeconomic tool. The way to proceed is to model the divergence of actual prices and quantities of commodities from their equilibria in a multi-sectoral economy and establish that the long-run behaviour of the system mirrors the long-run movement of the labour values.

This thesis is a contribution to recent debates on the labour theory of value (LTV). It builds upon two distinctive features of the LTV; first, the categories used in the inquiry are historically determined modes of existence of...more

This thesis is a contribution to recent debates on the labour theory of value (LTV). It builds upon two distinctive features of the LTV; first, the categories used in the inquiry are historically determined modes of existence of capitalist social relations; second, it rejects equilibrium as the organizing principle of the investigation. Six issues are analysed in the light of these elements and the previous literature. First, the relationship between dialectical logic and the LTV is addressed through an evaluation of the &#39;new dialectics&#39;. This approach to Marx&#39;s method understands the LTV as a systematic dialectical theory, whose aim is the reconstruction in thought of the main characteristics of capitalism. Second, the relationship between labour and value is assessed through the real processes that determine value and price, the normalization, synchronization and homogenization (NSH) of labour. Three well-known views of the LTV are assessed in this light; the tradition...

This article, by utilizing Ricardo's numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive...more

This article, by utilizing Ricardo's numerical examples, derives theoretical statements about the deviations of relative values (prices) from relative labor times. These deviations result from the presence of capital and the distributive variables (rate of profit and wage) and production (turnover) times. Furthermore, Ricardo argued that the intertemporal changes in relative (market) prices were no different from the respective changes in natural (or equilibrium) prices. Both depend primarily on changes in unit labor values and secondarily on capital intensities. The article continues by testing the extent to which Ricardo's thesis holds by utilizing input-output data from the US and Chinese economies. The derived empirical results lend overwhelming support to Ricardo's thesis, which is conformable with major aspects of Marx's theory of value.

This article using the principal components analysis identifies key industries and groups them into particular clusters. The data come from the US benchmark inputoutput tables of the years 2002, 2007, 2012 and the most recently published...more

This article using the principal components analysis identifies key industries and groups them into particular clusters. The data come from the US benchmark inputoutput tables of the years 2002, 2007, 2012 and the most recently published inputoutput table of the year 2019. We observe some intertemporal switches of industries both between and within the top clusters. The findings further suggest that structural change is a slow moving process and it takes time for some industries to move from one cluster to the other. This information may be proved important in the designation of effective economic policies by targeting particular industries and also for the stability properties of the economic system.

Many empirical studies indicate that the deviations of actual prices of production from labour values are not too sensitive to the type of measure used for their evaluation. This paper attempts to theorize this rather 'stylized fact' by...more

Many empirical studies indicate that the deviations of actual prices of production from labour values are not too sensitive to the type of measure used for their evaluation. This paper attempts to theorize this rather 'stylized fact' by focusing on the relationships between the traditional and the numéraire-free measures of deviation. On the empirical side, it provides an illustration of these relationships using input-output data from the Japanese economy. * This is an abridged version of Mariolis and Tsoulfidis (2010). We are indebted to two anonymous referees and the Editors of this journal for extremely helpful comments and advice on earlier versions of the paper. The usual disclaimer applies.

Fred Moseley's Money and Totality (2016) presents the author's "macromonetary interpretation" of Marx's value theory, with particular reference to the transformation of value into price of production in Capital, Volume III. This theory,...more

Fred Moseley's Money and Totality (2016) presents the author's "macromonetary interpretation" of Marx's value theory, with particular reference to the transformation of value into price of production in Capital, Volume III. This theory, while trying to be faithful to Marx's texts, accomplishes this by means of a logically indefensible claim, which, if it came to be seen as representing Marx's work as such, would contribute to sidelining and disconfirming the Marxist tradition. Review of the long-standing "transformation problem" debate, in the light of Moseley's contribution, in non-technical terms, suggests that the way forward is to avoid text-based orthodox defenses of Marx in favor of reworking his core insights, building on the accomplishments of Marxist theory in the 20th century, and using the tools and methods of modern economic theory and social science wherever possible.

This article presents a comprehensive values and prices formation model based on Marx's (1992, 1993) labor theory of value within a Temporal Single-System Interpretation (TSSI) framework. This model bases on a new interpretation of the...more

This article presents a comprehensive values and prices formation model based on Marx's (1992, 1993) labor theory of value within a Temporal Single-System Interpretation (TSSI) framework. This model bases on a new interpretation of the Marxian Fundamental Theorem (FMT) and the Monetary Expression of Labor Time (MELT). If the modification in the dialectical sequence of the formation of the categories and the introduction of the dual determination of socially necessary labor time are accepted, the transformation problem encounters solution in the interpretation of Carchedi and de Haan (1996). Likewise, contemporary approaches reveal the need for a redefinition of key categories of the Marxist labor theory of value to develop a logically coherent model. Thus, the proposed model includes the dimension of the realization problem that commodities face in the market and introduce analytical categories for both production and realization periods. Finally, value category is redefined.

It has long been accepted that Marx was a follower of the labour theory of value. This position has recently been challenged by Harvey. This paper shows that the essential basis of Marx&#39;s value theory remained labour and that it did...more

It has long been accepted that Marx was a follower of the labour theory of value. This position has recently been challenged by Harvey. This paper shows that the essential basis of Marx&#39;s value theory remained labour and that it did not differ substantially from that of Ricardo. It also references data showing the empirical validity of the theory and presents example data from the UK 1998 input output table showing how closely monetary output shadows labour content.

The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating...more

The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating economic phenomena. In this respect macroscopic phenomena, which include many distinct production processes evolving over long gestation periods, conceal the transformation of labour values into their monetary expression (prices). Consequently, the use of the LTV on a grand and dynamic scale is usually considered inapplicable in the construction of macroeconomic models. The classical/Marxian analysis is conducted through either multidimensional multi-sectoral models or the solution of the summation problem of heterogeneous commodities. However, many studies have corroborated the dynamic aspects of the LTV and probed for a reduction in the dimensionality of macroeconomic models. In this paper, on the one hand, we restate the dynamic aspects of the LTV over time and, on the other hand, ascertain its utility as a long-run macroeconomic tool. The way to proceed is to model the divergence of actual prices and quantities of commodities from their equilibria in a multi-sectoral economy and establish that the long-run behaviour of the system mirrors the long-run movement of the labour values.

Chapters 1-5 set out an increasingly concrete exposition of the capitalist economy: first its conditions of existence and next its manifestations. The same applies to Chapters 6-10 for the capitalist state. The reader may wish to read the...more

Chapters 1-5 set out an increasingly concrete exposition of the capitalist economy: first its conditions of existence and next its manifestations. The same applies to Chapters 6-10 for the capitalist state. The reader may wish to read the book in this order. However, Chapter 6 equally provides the grounds of Chapter 1. As does Chapter 7 for Chapter 2, and so forth. The book has been written in such a way that the reader might also read the book in this zigzag order [1;6], [2;7] and so on. This is further amplified on in the General Introduction. The systematic core of the text makes up about half of the book. The rest consists of 'explications' , 'amplifications' and 'addenda' of/on the core text, variously serving the less advanced and the advanced reader in a field-these can be read according to the reader's requirements, or skipped without losing the main thread of the core text.

part two-the capitalist state Division 4. The combined effect of state expenditure and taxation on the enterprises' after tax surplus-value 407 8 §7 A profits tax: taxation of surplus-value 407 8 §8 The effect of a fiscal deficit of the...more

part two-the capitalist state Division 4. The combined effect of state expenditure and taxation on the enterprises' after tax surplus-value 407 8 §7 A profits tax: taxation of surplus-value 407 8 §8 The effect of a fiscal deficit of the state on the after tax surplus-value 409 Division 5. Forms of taxation: the distribution of income and wealth 412 8 §9 The finance of social security: taxes and social security contributions 412 8 §10 Forms of taxation 415 8 §11 Forms and design of taxation, and their legitimation in compliance to a particular distribution of income 416 8 §12 The after-tax resulting distribution of wealth 424 Summary and conclusions 433 Appendix 8.A. Data and data sources of the graphs in chapter 8 435 List of figures chapter 8 439

This is an open access chapter distributed under the terms of the prevailing CC-BY-NC-ND License at the time of publication. chapter 14 An outline of systematic dialectics-General appendix A systematic-dialectical method for the...more

This is an open access chapter distributed under the terms of the prevailing CC-BY-NC-ND License at the time of publication. chapter 14 An outline of systematic dialectics-General appendix A systematic-dialectical method for the investigation and exposition of the capitalist system

Marx&#39;s Capital III , The Culmination of Capital: General Introduction G.Reuten Class, Capital, and Crisis P.Mattick Capital in General and Marx&#39;s Capital C.J.Arthur Hostile Brothers: Marx&#39;s Theory of the Distribution of...more

Marx&#39;s Capital III , The Culmination of Capital: General Introduction G.Reuten Class, Capital, and Crisis P.Mattick Capital in General and Marx&#39;s Capital C.J.Arthur Hostile Brothers: Marx&#39;s Theory of the Distribution of Surplus-Value in Volume III of Capital F.Moseley Transformation and the Monetary Circuit: Marx as a Monetary Theorist of Production R.Bellofiore Capital, Competition and Many Capitals C.J.Arthur Surplus Profits from Innovation: A Missing Level in Capital III ? T.Smith The Rate of Profit Cycle and the Opposition between Managerial and Finance Capital G.Reuten The Credit System M.Campbell Rent and Landed Property M.Campbell The Illusion of the Economic: The Trinity Formula and the &#39;Religion of Everyday Life&#39;: P.Murray Abstracts of the Chapters Notes on the Contributors Author Index Subject Index

Chapters 1-5 set out an increasingly concrete exposition of the capitalist economy: first its conditions of existence and next its manifestations. The same applies to Chapters 6-10 for the capitalist state. The reader may wish to read the...more

Chapters 1-5 set out an increasingly concrete exposition of the capitalist economy: first its conditions of existence and next its manifestations. The same applies to Chapters 6-10 for the capitalist state. The reader may wish to read the book in this order. However, Chapter 6 equally provides the grounds of Chapter 1. As does Chapter 7 for Chapter 2, and so forth. The book has been written in such a way that the reader might also read the book in this zigzag order [1;6], [2;7] and so on. This is further amplified on in the General Introduction. The systematic core of the text makes up about half of the book. The rest consists of 'explications' , 'amplifications' and 'addenda' of/on the core text, variously serving the less advanced and the advanced reader in a field-these can be read according to the reader's requirements, or skipped without losing the main thread of the core text.

General Introduction because Marx felt embarrassed that he had not y.et produ~ed the promised book on the circulation of c,aP.ita.l. ObvlOusl,Y th!s p~ra graph is also a remnant of the famous. m~s~mg chapter on the 1I~ mediate results of...more

General Introduction because Marx felt embarrassed that he had not y.et produ~ed the promised book on the circulation of c,aP.ita.l. ObvlOusl,Y th!s p~ra graph is also a remnant of the famous. m~s~mg chapter on the 1I~ mediate results of commodity production (mcluded as an appendix to the 1976 English translation of Book I-compare 1;" 97?): Thus Marx indicates the duality of capitalist production: It IS a contradictory process of producing useful objects (labour process) .an~ at the same time of producing value and surplus value (valonzatlOn process). The latter, however, dominates the former. (See .Re.uten & Williams, 1989: ch. 1; and the chapter he~e by Murray pomtmg out that the 'real subsumption' of labour mdeed affects the labour process and the kind of commodities being prod~ced). Moseley in this volume points out that Marx, with his Reproduction Scheme; of part Three, 'and against Smith's 'dogma' in t~is respect, shows how the annual production indeed reproduces capital.

Marx's account in Capital of the production of surplus-value is examined (Volume I, Parts Three to Five), especially his formalizations in relation to the conceptual progress in the book. It is indicated that his formulas convey...more

Marx's account in Capital of the production of surplus-value is examined (Volume I, Parts Three to Five), especially his formalizations in relation to the conceptual progress in the book. It is indicated that his formulas convey theoretical results rather than explanatory processes/mechanisms. This becomes an obstacle particularly when Marx introduces the key concepts of `productive force' (in modern jargon: technique of production) and `intensity of labour', leaving behind any simple explanation of value in terms of labour-time. In face of this, the paper sets out an elementary and immanent reconstruction of Marx's formalization, in which the rate of surplus-value is cast in terms of all of Marx's main explanatory variables: extensity of labour, wages, productive force and intensity of labour.

The author presents the results of the discovery in Marx's works of the disparate elements of the theory of the original transformation of value into prices and the establishment of the general rate of profit. These results show: (a)...more

The author presents the results of the discovery in Marx's works of the disparate elements of the theory of the original transformation of value into prices and the establishment of the general rate of profit. These results show: (a) Marx's tables in Chapter 9 of Volume III of Capital do not represent the usual interrelated branches of the economy, but particular spheres of production, exempt from the double-counting of profits and wages, and producing only final commodities. The total value of these commodities is equal to the net social product. (b) Marx carried out the original transformation of values into prices under the condition that wages remain unchanged. As a result, the first (chief) macroeconomic equality is fulfilled-the sum of the production prices for all net social products must be equal to the sum of its values. Also is fulfilled the second macroeconomic equality-the sum of profits of all sectors forming separate spheres of production must be equal to the sum of surplus values. (c) Marx assumed that the original transformation takes place in two stages: in the first stage, average rates of profit are formed in separate spheres of production, comprising two sectors of production: A and B. Sector A produced of constant capital for the sphere's own need. Sector B releases the final product for an exchange with other particular spheres. In the second stage, is established the general rate of profit in sectors B. A property of the original conversion is some change in the level of real wages, especially noticeable when using numerical models with a few spheres of commodity production. Therefore, Marx introduces the hypothesis of mutual compensation of positive and negative deviations of prices from the values of commodities. The hypothesis is fully confirmed under the conditions of the law of large numbers. (d) Marx also explains that non-equilibrium original prices of production, in which demand and supply of final goods do not coincide, can be transformed into equilibrium prices of production. For this to happen, corresponding changes in monetary wages, prices of constant capital, and the general rate of profit are necessary. However, the attainment of equilibrium prices was regarded by Marx as a secondary issue. At equilibrium prices, only the first (chief) macroeconomic equality is fulfilled. The author in developing alternative methods of transforming value into original and equilibrium prices of production uses all of the above elements of the theory of transformation of values into production prices. First, he restores the double counting of profits and wages in Marx's table. Second, he applies an iterative procedure of sequentially establishing the average and general rate of profit in the sectors and spheres of commodity production. The paper proposes new iterative calculation algorithms in the Excel program for the original and equilibrium transformation of values into production prices. The author tested the algorithms using the Wolfram Mathematica software. He also developed a method for converting the equilibrium production prices of goods back to their initial absolute values. This method refutes the well-known "eraser algorithm" by P. Samuelson. Ultimately, the author argues that Marx does not have the errors of transformation that his critics have attributed to him for so long. Marx; transformation problem; original transformation; particular sphere of production; the equilibrium price of production; inverse transformation JEL CODES B14; B16; B24; B51; D58; E11; P16 4 The German translation is "separated spheres" is more appropriate here, rather than is "various spheres" (see Marx [1894] 1904, 184). 5 I use here a more accurate translation from the edition that first appeared in Pelican Books 1981 and reprinted in Penguin Classics 1991.

This paper focuses on a key concern of the Cambridge capital controversies: Sraffa&#39;s theoretical demonstration that competitive relative prices, and hence the money value of aggregate capital, can vary in complex ways as the wage...more

This paper focuses on a key concern of the Cambridge capital controversies: Sraffa&#39;s theoretical demonstration that competitive relative prices, and hence the money value of aggregate capital, can vary in complex ways as the wage share (profit rate) changes. We find that, on the contrary, individual prices are usually linear or mildly curved. We develop a formal measure of curvature, and find that average price curvature does not fall with matrix size as proposed in Brody&#39;s random matrix hypothesis. Since the average curves are near-linear, it follows that aggregates such as capital, wages, and net output will exhibit the same behavior. We believe this explains the widely observed near-linearity of the wage–profit curve.

After retiring he went back to what had been his first professional interest: pure economic theory. He wrote two articles published in the World Economics Association journals:  the first one on Piketty: "Again on Piketty's Capital in...more

After retiring he went back to what had been his first professional interest: pure economic theory. He wrote two articles published in the World Economics Association journals:  the first one on Piketty: "Again on Piketty's Capital in the Twenty-First Century or Why National Accounts and Three Simple Laws Should not be a Substitute for Economic Theory" in the World Economic Review, N°5 (July 2015);  the second one on Sraffa: "Commodities do not produce commodities: A critical view of Sraffa's theory of production and prices" in the Real World Economics Review, issue N° 72 (30 September 2015). He devoted the last three years to the continuation of a reflection that was initiated with his thesis on "Hypotheses and concepts in the theories of value, capital and distribution". More than forty years after his thesis had left some questions unanswered, he feels that he has at last succeeded in redefining the most basic concepts of production, values, distribution and prices, allowing to establish in this book a series of fundamental principles of political economy. His conviction is indeed that Economic Theory, even though it will always remain an incomplete science, needs to be rebuilt starting from its foundations, which these concepts and principles might now help to provide.

In his macro-monetary interpretation of Marx&#39;s theory of value, Fred Moseley claims that Marx&#39;s prices of production should be considered as the long-run equilibrium condition of capital reproduction under the assumption of given...more

In his macro-monetary interpretation of Marx&#39;s theory of value, Fred Moseley claims that Marx&#39;s prices of production should be considered as the long-run equilibrium condition of capital reproduction under the assumption of given technology and given capital distribution. Moseley&#39;s methodological interpretation depends on the claim that the general rate of profit is completely predetermined in the first two volumes of Capital. I argue to the contrary that though Moseley shows the inadequacy of the Standard Interpretation, he fails to provide a convincing description of Marx&#39;s category of prices of production. The production of the new total value and total surplus-value cannot be considered as simply determined by the initial conditions of production; if we want to describe how prices of production are formed and the role they play in the social reproduction of capital, we should recognize that in social reproduction this process develops temporally through an intert...