The Counterfactual Method of Marx's Theory of Surplus
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.
Volume (Year): 15 (2003)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CRPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CRPE20|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Samuelson, Paul A, 1971. "Understanding the Marxian Notion of Exploitation: A Summary of the So-Called Transformation Problem Between Marxian Values and Competitive Prices," Journal of Economic Literature, American Economic Association, vol. 9(2), pages 399-431, June.
- Lipietz, Alain, 1982. "The so-called "transformation problem" revisited," Journal of Economic Theory, Elsevier, vol. 26(1), pages 59-88, February.
- 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.
- 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(01), pages 107-121, March.
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.
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.