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Value, Price, And Exploitation: The Logic Of The Transformation Problem

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  • Simon Mohun
  • Roberto Veneziani

Abstract

This paper tries to clarify the logical structure of the relationship between labor values and prices from an axiomatic perspective. The famous “transformation problem†is interpreted as an impossibility result for a specific interpretation of value theory based on specific assumptions and definitions. A comprehensive review of recent literature is provided, which shows that there are various theoretically relevant and logically consistent alternative interpretations based on different assumptions and definitions.

Suggested Citation

  • Simon Mohun & Roberto Veneziani, 2017. "Value, Price, And Exploitation: The Logic Of The Transformation Problem," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1387-1420, December.
    • Handle: RePEc:bla:jecsur:v:31:y:2017:i:5:p:1387-1420
    DOI: 10.1111/joes.12223
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    References listed on IDEAS

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    1. Peter Flaschel, 2010. "Topics in Classical Micro- and Macroeconomics," Springer Books, Springer, number 978-3-642-00324-0, June.
    2. Bruce Roberts, 2009. "RICARDO: Standard Commodity : : MARX: ?," Review of Political Economy, Taylor & Francis Journals, vol. 21(4), pages 589-619.
    3. Gérard Duménil & Duncan Foley & Dominique Lévy, 2009. "A Note On The Formal Treatment Of Exploitation In A Model With Heterogenous Labor," Metroeconomica, Wiley Blackwell, vol. 60(3), pages 560-567, July.
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    5. Roberto Veneziani & Naoki Yoshihara, 2015. "Exploitation in economies with heterogeneous preferences, skills and assets: An axiomatic approach," Journal of Theoretical Politics, , vol. 27(1), pages 8-33, January.
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    10. Samuelson, Paul, 2012. "Understanding the Marxian Notion of Exploitation: A Summary of the So-CalledTransformation Problem Between Marxian Values and Competitive Prices," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, pages 182-202, August.
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    22. Mohun, Simon & Veneziani, Roberto, 2009. "The temporal single-system interpretation: underdetermination and inconsistency," MPRA Paper 30452, University Library of Munich, Germany.
    23. Richard D. Wolff & Bruce Roberts & Antonino Callari, 1984. "Unsnarling the Tangle: a Rejoinder," History of Political Economy, Duke University Press, vol. 16(3), pages 431-436, Fall.
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    Cited by:

    1. Attar, M. Aykut, 2021. "Growth, distribution and dynamic inefficiency in Turkey: An analysis of the naïve neoclassical theory of capital," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 20-30.
    2. Kuochih Huang & Junshang Liang, 2021. "Chinese Studies on the Transformation Problem: A Selective Review," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 725-734, December.
    3. Yoshihara, Naoki & Veneziani, Roberto, 2023. "The measurement of labour content: An axiomatic approach," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 392-402.
    4. Jonathan F. Cogliano & Roberto Veneziani & Naoki Yoshihara, 2022. "Computational methods and classical‐Marxian economics," Journal of Economic Surveys, Wiley Blackwell, vol. 36(2), pages 310-349, April.
    5. Naoki Yoshihara, 2021. "On the labor theory of value as the basis for the analysis of economic inequality in the capitalist economy," Japanese Economy, Taylor & Francis Journals, vol. 47(2-3), pages 190-212, July.
    6. Gabriel V. Montes‐Rojas, 2023. "A typology of Marxian transformation procedures with endogenous exploitation rate," Metroeconomica, Wiley Blackwell, vol. 74(1), pages 119-137, February.
    7. Bertram Schefold, 2019. "The transformation of values into prices on the basis of random systems revisited," Evolutionary and Institutional Economics Review, Springer, vol. 16(2), pages 261-302, December.

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    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian

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