The Deviation of Prices from Labor Values

Marx's equivalence theory on the relationship of prices to labor values is examined within the Leontieff-Sraffa subsystems framework. The subsystems approach helps show what percent the price of a good deviates from its labor value. An example is used to show that the subsystems approach is nec...

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Bibliographic Details
Published in:The American economic review 1982-12, Vol.72 (5), p.1208-1212
Main Author: Parys, Wilfried
Format: Article
Language:English
Subjects:
Commodities
Commodity prices
Economic systems
Economic theory
Economic value
Industrial products
Labor theories of value
Labor theory of value
Labor time
Matrices
Prices
Vertical integration
Working capital
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Summary:Marx's equivalence theory on the relationship of prices to labor values is examined within the Leontieff-Sraffa subsystems framework. The subsystems approach helps show what percent the price of a good deviates from its labor value. An example is used to show that the subsystems approach is necessary. Marx's use of only direct inputs can be misleading. When ordering different commodities according to the size of their capital composition, it does not matter whether capital is measured at labor prices or ruling prices.
ISSN:0002-8282
1944-7981