Wednesday, October 23, 2019

The Labor Theory of Value and Sraffa's Standard Commodity with Markup Pricing

I have uploaded a working paper with the post title.

Abstract: This article demonstrates relationships that are transparent in Sraffa's standard system hold even when relative rates of profit vary persistently among industries. Even with such variations, total constant capital, total variable capital, total surplus value, and the rate of profits are unaltered by evaluation at labor values and at prices of production in Sraffa’s standard system. These results buttress those who see in the standard commodity a solution for Marx’s so-called transformation problem.

2 comments:

Boffy said...

And mark up wages both together?

Robert Vienneau said...

I assume it would work if wages, instead of labor-power, are advanced. But I'd have to work through the algebra to be sure.