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A Critique of the ‘New Approach’ to the Transformation Problem and a Proposal

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  • Mariolis, Theodore

Abstract

This paper shows that the ‘New Approach’ to the ‘problem of transforming values into prices’, first, is subjected to a crucial logical inconsistency and second, is not in a position to deal with the heterogeneous labour case. Thus, the paper proposes an approach, which overcomes these problems and concludes that values of commodities are their actual prices.

Suggested Citation

  • Mariolis, Theodore, 2006. "A Critique of the ‘New Approach’ to the Transformation Problem and a Proposal," MPRA Paper 24019, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:24019
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    File URL: https://mpra.ub.uni-muenchen.de/24019/1/MPRA_paper_24019.pdf
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    References listed on IDEAS

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    1. Bidard, Christian, 1997. "Pure Joint Production," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 21(6), pages 685-701, November.
    2. Heinz D. Kurz & Neri Salvadori (ed.), 1998. "The Elgar Companion to Classical Economics," Books, Edward Elgar Publishing, volume 0, number 851.
    3. Kurz,Heinz D. & Salvadori,Neri, 1997. "Theory of Production," Cambridge Books, Cambridge University Press, number 9780521588676.
    4. Steedman, Ian & Tomkins, Judith, 1998. "On Measuring the Deviation of Prices from Values," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 22(3), pages 379-385, May.
    5. Steedman, Ian & Metcalfe, J S, 1981. "On Duality and Basic Commodities in an Open Economy," Australian Economic Papers, Wiley Blackwell, vol. 20(36), pages 133-141, June.
    6. Glick, Mark & Ehrbar, Hans G, 1987. "The Transformation Problem: An Obituary," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 294-317, December.
    7. Simon Mohun, 1993. "Response to Steedman's Reply," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(2), pages 248-250, July.
    8. Simon Mohun, 1993. "A note on Steedman's " Joint production and the 'new solution' to the transformation problem"," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 28(2), pages 241-246, July.
    9. Ulrich Krause, 1981. "Heterogeneous Labour and the Fundamental Marxian Theorem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(1), pages 173-178.
    10. Mariolis, Theodore, 2006. "A Critical Note on Marx’s Theory of Profits," MPRA Paper 24044, University Library of Munich, Germany.
    11. Mohun, Simon, 1994. "A Re(in)statement of the Labour Theory of Value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 18(4), pages 391-412, August.
    12. Ian Steedman, 2000. "Income Distribution, Foreign Trade and the Value-Added Vector," Economic Systems Research, Taylor & Francis Journals, vol. 12(2), pages 221-230.
    13. Mohun, Simon, 2000. "New Solution or Re(in)statement? A Reply," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(1), pages 113-117, January.
    14. Theodore Mariolis, 2004. "Pure joint production and international trade: a note," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(3), pages 449-456, May.
    15. Ian Steedman, 1999. "Production of Commodities by Means of Commodities and the Open Economy," Metroeconomica, Wiley Blackwell, vol. 50(3), pages 260-276, October.
    16. 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.
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    Cited by:

    1. Stergios A. Seretis & Persefoni V. Tsaliki, 2012. "Value transfers in trade: an explanation of the observed differences in development," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 39(12), pages 965-982, October.

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    More about this item

    Keywords

    Abstract social labour; heterogeneous labour; New Approach; transformation problem;
    All these keywords.

    JEL classification:

    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory
    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian

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