IDEAS home Printed from https://ideas.repec.org/a/taf/revpoe/v15y2003i1p107-124.html
   My bibliography  Save this article

The Counterfactual Method of Marx's Theory of Surplus

Author

Listed:
  • Stefano Perri

Abstract

The aim of this paper is to show that Marx supports his theory of surplus value by developing a counterfactual argument, that is, by comparing the 'normal' state of a capitalist economy against a hypothetical state in which no surplus is produced. Marx then divides his analysis of value into three successive steps. The first deals with the production of new value in the sphere of production; the second with the process of creation of surplus value, both in the sphere of production and in the sphere of circulation; and the third with the process of equalisation of the rate of profit, which is accomplished via capitalist competition in the sphere of circulation. The paper proposes a formalisation of the three-step analysis and of the counterfactual argument. Marx's three-step analysis is shown to be a scientific analysis of the hidden connections between social relations (expressed in labour flows) and commodity exchange; thus it is not a useless detour.

Suggested Citation

  • Stefano Perri, 2003. "The Counterfactual Method of Marx's Theory of Surplus," Review of Political Economy, Taylor & Francis Journals, vol. 15(1), pages 107-124.
    • Handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:107-124
    DOI: 10.1080/09538250308438
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09538250308438
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09538250308438?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Williams, Michael, 1992. "Marxists on Money, Value and Labour-Power: A Response," Cambridge Journal of Economics, Oxford University Press, vol. 16(4), pages 439-445, December.
    2. 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.
    3. Duncan K. Foley, 1982. "The Value of Money the Value of Labor Power and the Marxian Transformation Problem," Review of Radical Political Economics, Union for Radical Political Economics, vol. 14(2), pages 37-47, June.
    4. Keen, Steve, 1993. "Use-Value, Exchange Value, and the Demise of Marx's Labor Theory of Value," Journal of the History of Economic Thought, Cambridge University Press, vol. 15(1), pages 107-121, April.
    5. Lipietz, Alain, 1982. "The so-called "transformation problem" revisited," Journal of Economic Theory, Elsevier, vol. 26(1), pages 59-88, February.
    6. Cartelier, Jean, 1991. "Marx's Theory of Value, Exchange and Surplus Value: A Suggested Reformulation," Cambridge Journal of Economics, Oxford University Press, vol. 15(3), pages 257-269, September.
    7. Samuelson, Paul A, 1974. "Insight and Detour in the Theory of Exploitation: A Reply to Baumol," Journal of Economic Literature, American Economic Association, vol. 12(1), pages 62-70, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jonathan F. Cogliano, 2017. "Surplus Value Production and Realization in Marxian Theory - Applications to the U.S., 1987-2015," Working Paper Series 2017-01, Dickinson College, Department of Economics.
    2. Jonathan F. Cogliano, 2021. "Marx's Equalized Rate of Exploitation," Working Papers 2021-01, University of Massachusetts Boston, Economics Department.
    3. Cavalieri, Duccio, 1995. "Plusvalore e sfruttamento dopo Sraffa. Lo stato del problema [Surplus Value and Exploitation After Sraffa: The State of the Problem]," MPRA Paper 43780, University Library of Munich, Germany.
    4. Eckhard Hein, 2006. "Money, interest and capital accumulationin Karl Marx's economics: a monetary interpretation and some similaritiesto post-Keynesian approaches," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 13(1), pages 113-140.
    5. Alan Freeman, 1998. "A General Refutation of Okishio’s Theorem and a Proof of the Falling Rate of Profit," Palgrave Macmillan Books, in: Riccardo Bellofiore (ed.), Marxian Economics: A Reappraisal, chapter 10, pages 139-162, Palgrave Macmillan.
    6. Freeman, Alan, 2010. "Trends in Value Theory since 1881," MPRA Paper 48646, University Library of Munich, Germany, revised 04 Jan 2011.
    7. 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.
    8. Freeman, Alan, 2017. "Introduction to Michel Husson's 'Value and price: a critique of neo-Ricardian claims'," MPRA Paper 89949, University Library of Munich, Germany, revised 10 Oct 2017.
    9. Ajit Sinha, 2000. "The Transformation Problem: Is the Standard Commodity a Solution?," Review of Radical Political Economics, Union for Radical Political Economics, vol. 32(2), pages 265-281, June.
    10. Eckhard Hein, 2005. "Money, Interest, and Capital Accumulation in Karl Marx’s," Method and Hist of Econ Thought 0501002, University Library of Munich, Germany.
    11. Freeman, Alan, 1995. "Marx without Equilibrium," MPRA Paper 1207, University Library of Munich, Germany.
    12. Deepankar Basu, 2017. "Quantitative Empirical Research In Marxist Political Economy: A Selective Review," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1359-1386, December.
    13. Emilio Diaz & Francisco Velasco, 2016. "The Transformation of Values into Prices of Production in Marx’s Scheme of Expanded Reproduction," Review of Radical Political Economics, Union for Radical Political Economics, vol. 48(3), pages 394-416, September.
    14. Ernesto Screpanti, 2015. "The Demise of Marx’s Labour Theory of Value and the ‘New Interpretation’: A Recap Note," Department of Economics University of Siena 708, Department of Economics, University of Siena.
    15. Fred Moseley, 2000. "The "New Solution" to the Transformation Problem: A Sympathetic Critique," Review of Radical Political Economics, Union for Radical Political Economics, vol. 32(2), pages 282-316, June.
    16. John B. Davis, 2013. "Mark Blaug on the historiography of economics," Chapters, in: Marcel Boumans & Matthias Klaes (ed.), Mark Blaug: Rebel with Many Causes, chapter 12, pages 159-176, Edward Elgar Publishing.
    17. Andrew Kliman & Ted McGlone, 1999. "A Temporal Single-system Interpretation of Marx's Value Theory," Review of Political Economy, Taylor & Francis Journals, vol. 11(1), pages 33-59.
    18. Fahd Boundi Chraki, 2018. "El problema de la transformación de valores en precios de producción. Una revisión de literatura en torno a las soluciones de Marx, Bortkiewicz-Winternitz y Morishima," Ensayos de Economía 16779, Universidad Nacional de Colombia Sede Medellín.
    19. Yoshihara, Naoki, 2010. "Class and exploitation in general convex cone economies," Journal of Economic Behavior & Organization, Elsevier, vol. 75(2), pages 281-296, August.
    20. Cavalieri, Duccio, 2013. "On the theory of capital in post-industrial societies," MPRA Paper 51719, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:15:y:2003:i:1:p:107-124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CRPE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.