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The Transformation Problem: A Tale of Two Interpretations

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Author Info
Bieri, David

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Abstract

Over 100 years since Marx's value theory of labour was first published, the so-called ``transformation problem'' -- deriving prices from values and providing a theory of profits as arising from surplus value -- has inspired the imagination of economists of all shades of intellectual suasion. However, while mainstream economists have by and large come to dismiss the transformation problem as a trivial technical exercise, the issue has recently received renewed attention in Marxian economic theory. This paper provides a broad historical overview of the transformation problem and specifically focuses on similarities and differences of how the transformation problem has been interpreted, why it was put to rest in mainstream economics and how it has regained prominence in Marxian economics.

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File URL: http://mpra.ub.uni-muenchen.de/3895/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3895.

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Date of creation: 15 May 2007
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Handle: RePEc:pra:mprapa:3895

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Related research
Keywords: History of Economic Thought Marxian Economics Value Theory of Labour

Find related papers by JEL classification:
B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist

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This page was last updated on 2008-10-6.


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