The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Marxian Transformation Problem

  • Duncan Foley
  • Gérard Duménil
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2082

Abstract

The transformation problem relates the labour theory of value and the competitive equalization of the rate of profit. Marx distinguishes the production of surplus-value from its redistribution through prices. Critics claim that the labour theory of value is an unnecessary detour to the determination of prices because total value and surplus-value are not conserved. The Single-System Labour Theory of Value (SS-LTV) argues that at any prices (1) the price of the net product expresses the labour expended, and (2) total profits are the price form of surplus-value, because the value of labour-power is the labour time equivalent of the wage.

Keywords

Capitalist law of exchange Commodity law of exchange Constant and variable capital Dual system Exploitation Fundamental Marxian Theorem Gravitation Labour power Labour theory of value Labour time Marx, K. H. Marxian transformation problem Monetary expression of value or labour time Natural price Net product ‘New interpretation’ of labour theory of value Profit, rate of Ricardo, D. Single-system labour theory of value Smith, A. Surplus-value Transformation problem Value Value added Value of labour-power Variable capital 

JEL Classifications

B1 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Duncan Foley
    • 1
  • Gérard Duménil
    • 1
  1. 1.