Modern Analysis of Value Theory pp 44-64 | Cite as

# Joint-Production and the Theory of Value

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## Abstract

It has been demonstrated that Marx’s major conclusions are valid in a Leontief economy or a narrow plain economy. In such an economy, however, alternative processes, fixed capital and joint-production are not admitted to their full extent.

## Keywords

Total Profit Fixed Capital Profitability Condition Dual Condition Total Surplus
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## Notes

- 1).This was produced from the equation (1′ ) in Morishima (4),p.183.Google Scholar
- 2).Pd.C. is defined for Dx “>”0
^{m}in this chapter. The same note applies to Pf.C. and S.C. introduced later.Google Scholar - 3).As for the generalised inverse, refer to the Mathematical Addenda, pp.147-8.Google Scholar
- 4).A Leontief economy in which alternative processes are permitted is usually called the generalised Leontief economy. Murata(2) discussed Marx’s theory of value in the generalised Leontief economy case. Murata defined value as a minimiser of a certain type of norm, and the value equation is approximately solved by using Penrose’s inverse. Penrose’s inverse is unique, if it exists, and hence the value can then be determined uniquely. The value may rest on the form of norms, nevertheless.Google Scholar
- 5).The axiom of impossibility of land of Cockaigne means that the primary factors of production are essential for production, and hence it comprehends the indispensability of labour. Nevertheless, the two are tantamount to each other here, because labour alone is the primary factor of production in the present discussion.Google Scholar
- As seen in Proposition 2, L ≥ 0
_{n}does not suffice for the indispensability of labour.Google Scholar - 6).This is an extension of the “efficient point” in activity analysis. Refer to Koopmans, p.60.Google Scholar
- 7).Kurz (2), in an attempt to criticise Steedman’s counterexample, rewrites Steedman’s value equation as follows: 5w
_{1}+l_{1}=6w_{1}+w_{2}, 10w_{2}+l_{2}=3w_{1}+12w_{2}, where l_{1}, and l_{2}stand for productivity indices.Google Scholar - From this, Kurz concluded that there exist l
_{1}, and l_{2}for which w_{1}, and w_{2}are positive.Google Scholar - In Kurz’s modified value equation, however, the same labour creates an unequal amount of value, and hence his assertion seems to be against the law of value.Google Scholar
- 8).A similar theorem was proved by Shiozawa(2).Google Scholar
- 9).Equation (22) will make no sense, if it is overdetermined. Hence, it may be plausible to presuppose rank H = min (m, n), even if m ≦ n.Google Scholar
- If n > m, (22) appears to be underdetermined: prices of m-n types of good can be determined a priori. This, however, raises no difficulty in the present discussion.Google Scholar
- 10).If the iteration formulae (I-23) are immediately extended, one can write: (23′) w
^{t+1}B=(1+μ^{t})w^{t}M, 1+μ^{t}=w^{t}Bx/w^{t}Mx. Even if rank B = m and hence BB^{-}= I, MB^{-}is not necessarily nonnegative.Google Scholar

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© Springer-Verlag Berlin Heidelberg 1982