IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2605.30890.html

A Geometric Approach to the Transformation Problem of Values

Author

Listed:
  • Jiyuan Lyu

Abstract

The reduction of complex labour to simple labour is an unresolved difficulty in Marx's labour theory of value, and a key obstacle that has prevented the transformation problem from being settled definitively. This paper proposes a two-step solution framework. First, we prove that as long as the macroeconomy generates a physical surplus, the reduction coefficients that respect the floor of labour-power reproduction form a bounded ``value feasible region''; within this region the two macro aggregate equalities can hold simultaneously for a reasonable range of the profit rate. Second, we propose a linear mapping method that exploits the observable structure of nominal wages and the reproduction floor constraint to systematically construct the implicit reduction coefficients from the value feasible region. We show that this mapping is a homeomorphism between the price feasible region and the value feasible region, and that it preserves the boundary structure. An empirical calibration based on China's 2017 inter-provincial input--output table with 1272 sectors shows that the reduction coefficients obtained by the mapping method substantially outperform the homogeneous labour method and the wage-proxy method in matching the macro profit share.

Suggested Citation

  • Jiyuan Lyu, 2026. "A Geometric Approach to the Transformation Problem of Values," Papers 2605.30890, arXiv.org.
  • Handle: RePEc:arx:papers:2605.30890
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2605.30890
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    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. 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.
    2. 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.
    3. Jonathan F Cogliano & Roberto Veneziani & Naoki Yoshihara, 2024. "The dynamics of international exploitation," Environment and Planning A, , vol. 56(5), pages 1420-1446, August.
    4. Naoki Yoshihara & Roberto Veneziani, 2009. "Exploitation as the Unequal Exchange of Labour: An Axiomatic Approach," Working Papers 655, Queen Mary University of London, School of Economics and Finance.
    5. Veneziani, Roberto & Yoshihara, Naoki, 2014. "One million miles to go: taking the axiomatic road to defining exploitation," UMASS Amherst Economics Working Papers 2014-10, University of Massachusetts Amherst, Department of Economics.
    6. Alban Pellegris, 2021. "La théorie marxienne de la valeur et l’économie écologique : en finir avec les malentendus," Working Papers hal-03171082, HAL.
    7. Roberto Veneziani & Luca Zamparelli & Naoki Yoshihara, 2017. "A Progress Report On Marxian Economic Theory: On The Controversies In Exploitation Theory Since Okishio (1963)," Journal of Economic Surveys, Wiley Blackwell, vol. 31(5), pages 1421-1448, December.
    8. Massimo Cingolani, 2015. "Sylos Labini su Marx: implicazioni per la politica economica (Sylos Labini on Marx: economic policy implications)," Moneta e Credito, Economia civile, vol. 68(269), pages 81-147.
    9. Yoshihara, Naoki & Veneziani, Roberto, 2018. "The Theory Of Exploitation As The Unequal Exchange Of Labour," Economics and Philosophy, Cambridge University Press, vol. 34(3), pages 381-409, November.
    10. Jonathan F. Cogliano & Roberto Veneziani & Naoki Yoshihara, 2016. "The Dynamics of Exploitation and Class in Accumulation Economies," Metroeconomica, Wiley Blackwell, vol. 67(2), pages 242-290, May.
    11. Duque Garcia, Carlos Alberto, 2021. "Economic Growth and the Rate of Profit in Colombia 1967-2019: A VAR Time-Series Analysis," MPRA Paper 109890, University Library of Munich, Germany.
    12. Samuel Jaramillo Gonz√°lez, 2013. "Abstract Labour Theory of Value and Theory of Price," Documentos CEDE 10735, Universidad de los Andes, Facultad de Economía, CEDE.
    13. 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.
    14. 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.
    15. Freeman, Alan, 2010. "Trends in Value Theory since 1881," MPRA Paper 48646, University Library of Munich, Germany, revised 04 Jan 2011.
    16. Soh Kaneko & Naoki Yoshihara, 2018. "On the General Impossibility of Persistent Unequal Exchange Free Trade Equilibria in the Pre-industrial World Economy," Working Papers SDES-2018-19, Kochi University of Technology, School of Economics and Management, revised Dec 2018.
    17. Enrico Sergio Levrero, 2017. "Towards a New Understanding of Sraffa," Review of Political Economy, Taylor & Francis Journals, vol. 29(2), pages 329-335, April.
    18. Roberto Veneziani & Luca Zamparelli & 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.
    19. Andrea Ricci, 2019. "Unequal Exchange in the Age of Globalization," Review of Radical Political Economics, Union for Radical Political Economics, vol. 51(2), pages 225-245, June.
    20. GIRARDI, Daniele & GRAU, Nicolas & VENEZIANI, Roberto & YOSHIHARA, Naoki, 2025. "Exploitation : Theory and Empirics," Discussion Paper Series 765, Institute of Economic Research, Hitotsubashi University.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2605.30890. 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: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    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.