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.
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Foley, D., Duménil, G. (2018). Marxian Transformation Problem. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2082
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2082
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