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Absolute and Exchangeable Value

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Abstract

The idea that changes in the relative or exchangeable value of a pair of commodities might usefully be attributed to alterations in the ‘absolute value’ of one or the other of them will appear rather odd to anyone accustomed to thinking of the basic problem of price theory as being the determination of sets of relative prices, with any consideration of ‘absolute’ value being confined to problems in monetary theory and the determination of the overall price level. Since in neoclassical theory it is the relative scarcity of commodities, or of the factor services which are used to produce them, which is the key to relative price formation, no conception of ‘absolute’ value, i.e. a price associated with the conditions of production of a single commodity, is either relevant or necessary.

This chapter was originally published in The New Palgrave: A Dictionary of Economics, 1st edition, 1987. Edited by John Eatwell, Murray Milgate and Peter Newman

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References

  • Marx, K. 1883. Capital, vol. 3. London: Lawrence & Wishart, 1976.

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  • Ricardo, D. 1820. Letter to J.R. McCullouch, 13 June 1820. In Works and correspondence of David Ricardo, vol. VIII, ed. P. Sraffa. Cambridge: Cambridge University Press, 1953.

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  • Ricardo, D. 1823. Paper on ‘Absolute and exchangeable value’ (rough draft, and unfinished clean version). In Works and correspondence of David Ricardo, vol. IV, ed. P. Sraffa. Cambridge: Cambridge University Press, 1951.

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  • Sraffa, P. 1951. Introduction. In Works and correspondence of David Ricardo, vol. 1. Cambridge: Cambridge University Press.

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  • Sraffa, P. 1960. Production of commodities by means of commodities. Cambridge: Cambridge University Press.

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Authors and Affiliations

  1. http://link.springer.com/referencework/10.1007/978-1-349-95121-5

    John Eatwell

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  1. John Eatwell
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Editor information

Editors and Affiliations

  1. Department of Economics, University of Wisconsin Department of Economics, Madison, USA

    Steven Durlauf

  2. Cornell University , ITHACA, New York, USA

    Lawrence E. Blume

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© 1987 The Author(s)

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Eatwell, J. (1987). Absolute and Exchangeable Value. In: Durlauf, S., Blume, L. (eds) The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_614-1

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  • DOI: https://doi.org/10.1057/978-1-349-95121-5_614-1

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  • Publisher Name: Palgrave Macmillan, London

  • Online ISBN: 978-1-349-95121-5

  • eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences

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Chapter history

  1. Latest

    Absolute and Exchangeable Value
    Published:
    15 March 2017

    DOI: https://doi.org/10.1057/978-1-349-95121-5_614-2

  2. Original

    Absolute and Exchangeable Value
    Published:
    17 October 2016

    DOI: https://doi.org/10.1057/978-1-349-95121-5_614-1

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