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Ricardo’s Theory of Value is Alive and Well in Contemporary Capitalism

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  • Tsoulfidis, Lefteris

Abstract

This article begins by utilizing Ricardo's numerical examples in the effort to derive theoretical statements about the changes in relative prices induced by changes in the distributive variables and production (turnover) times. According to Ricardo, the intertemporal growth rates in relative (market) prices are not too different from the respective growth rates of production (or equilibrium) prices and depend primarily on the growth rates of unit labor values and secondarily on capital intensities. The article continues by testing the extent to which Ricardo's main thesis by utilizing input-output data from the USA and China. The derived results lend overwhelming support to Ricardo's principles.

Suggested Citation

  • Tsoulfidis, Lefteris, 2017. "Ricardo’s Theory of Value is Alive and Well in Contemporary Capitalism," MPRA Paper 96491, University Library of Munich, Germany, revised 11 Oct 2019.
    • Handle: RePEc:pra:mprapa:96491
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    References listed on IDEAS

    as
    1. Lefteris Tsoulfidis & Theodore Mariolis, 2007. "Labour Values, Prices of Production and the Effects of Income Distribution: Evidence from the Greek Economy," Economic Systems Research, Taylor & Francis Journals, vol. 19(4), pages 425-437.
    2. Lefteris Tsoulfidis, 2002. "Values, prices of production and market prices: some more evidence from the Greek economy," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 26(3), pages 359-369, May.
    3. Lefteris Tsoulfidis, 2013. "Public Debt and J.S. Mill?s Conjecture: A Note," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2013(2), pages 93-102.
    4. Louis-Philippe Rochon & Sergio Rossi (ed.), 2015. "The Encyclopedia of Central Banking," Books, Edward Elgar Publishing, number 15438.
    5. Kurz, Heinz D., 2018. "Stigler on Ricardo," Centro Sraffa Working Papers CSWP27, Centro di Ricerche e Documentazione "Piero Sraffa".
    6. Lefteris Tsoulfidis, 2008. "Price-value deviations: further evidence from input-output data of Japan," International Review of Applied Economics, Taylor & Francis Journals, vol. 22(6), pages 707-724.
    7. Persefoni Tsaliki & Christina Paraskevopoulou & Lefteris Tsoulfidis, 2018. "Unequal exchange and absolute cost advantage: evidence from the trade between Greece and Germany [The local power of some unit root tests for panel data]," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(4), pages 1043-1086.
    8. Lefteris Tsoulfidis, 2009. "Competing Schools of Economic Thought," Springer Books, Springer, number 978-3-540-92693-1, September.
    9. Garegnani, Pierangelo, 1983. "The Classical Theory of Wages and the Role of Demand Schedules in the Determination of Relative Prices," American Economic Review, American Economic Association, vol. 73(2), pages 309-313, May.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    David Ricardo; Value and distribution; Price-value deviations;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • B30 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - General
    • B5 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D46 - Microeconomics - - Market Structure, Pricing, and Design - - - Value Theory

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