The Emergence of the Law of Value in a Dynamic Simple Commodity Economy
AbstractA dynamic computational model of a simple commodity economy is examined and a theory of the relationship between commodity values, market prices and the efficient division of social labour is developed. The main conclusions are: (i) the labour value of a commodity is an attractor for its market price; (ii) market prices are error signals that function to allocate the available social labour between sectors of production; and (iii) the tendency of prices to approach labour values is the monetary expression of the tendency of a simple commodity economy to allocate social labour efficiently. The model demonstrates that, in the special case of simple commodity production, Marx's law of value can naturally emerge from multiple local exchanges and operate 'behind the backs' of actors solely via money flows that place budget constraints on their local evaluations of commodity prices, which are otherwise subjective and unconstrained.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Review of Political Economy.
Volume (Year): 20 (2008)
Issue (Month): 3 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CRPE20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Wright, Ian, 2009.
"Implicit Microfoundations for Macroeconomics,"
Economics - The Open-Access, Open-Assessment E-Journal,
Kiel Institute for the World Economy, vol. 3(19), pages 1-27.
- Paul Cockshott & David Zachariah, 2013.
"Conservation laws, financial entropy and the Eurozone crisis,"
- Cockshott, Paul & Zachariah, David, 2014. "Conservation laws, financial entropy and the Eurozone crisis," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 8(5), pages 1-55.
- Cockshott, Paul & Zachariah, David, 2013. "Conservation laws, financial entropy and the eurozone crisis," Economics Discussion Papers 2013-36, Kiel Institute for the World Economy.
- Alejandro Agafonow & Havard Haarstad, 2009. "El socialismo del siglo XXI, ¿una alternativa factible?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 11(20), pages 287-307, January-J.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.