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Notes on Ricardo’s theory of value and taxation


  • Tsoulfidis, Lefteris


The purpose of this paper is twofold: on the one hand is to discuss Ricardo’s version of the labour theory of value; and on the other hand, is to analyse some crucial aspects of Ricardo’s theory of taxation as an extension and further elaboration of his theory of value. This discussion is illustrated with the use of a formal model based on a generalisation of Ricardo’s numerical examples. The claim that the paper raises is that Ricardo’s analysis of taxation is a kind of a comparative statics exercise, where the real wage, the state of technology and the level of output are taken as givens. Furthermore, it is shown that Ricardo’s claim that money’s role in the presence of taxation of profits is not neutral becomes questionable, when various feedback effects are accounted for.

Suggested Citation

  • Tsoulfidis, Lefteris, 2005. "Notes on Ricardo’s theory of value and taxation," MPRA Paper 35590, University Library of Munich, Germany, revised 27 Dec 2011.
  • Handle: RePEc:pra:mprapa:35590

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    References listed on IDEAS

    1. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    2. Jack L. Carr & James Ahiakpor, 1982. "Ricardo on the Non-Neutrality of Money in a World with Taxes," History of Political Economy, Duke University Press, vol. 14(2), pages 147-165, Summer.
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    More about this item


    Classical economists; Taxation; Theory of Value; Distribution;

    JEL classification:

    • B51 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Socialist; Marxian; Sraffian
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • B16 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Quantitative and Mathematical


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