Actual Meaning ofthe Aggregate Equality and Inequalities in the Transformation Problem
oer_030_4_213_237.pdf 800 KB
Three aggregate equalities have been discussed in the transformation problem in Marxian economics: total value =total price of production; total surplus value = total profit; total value product = total revenue. Marx thought that all the aggregate equalities hold simultaneously but nowadays the following three views are opposed to each other: (1) One which denies all the aggregate equalities (2) One which holds anyone ofthe aggregate equalities (3) One which holds any two or three ofthe aggregate equalities. The first and the second views do not need any modification of the definition ofvalue and / or price ofproduction whereas the last view does. The author takes the second view to assume total value = total price of production for the analysis of unequal exchange of embodied labour. The other two aggregate equalities do not hold under the assumption. The author insists that it does not mean the failure of the labour theory of value because the inequality between total surplus value and total profit as well as the inequality between total value product and total revenue indicate the possibility of additional unequal exchanges of embodied labour beyond the redistribution of surplus value among capitals.
The Economic Association of Okayama University
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