• Table of Contents
    • Abstract
    • Keywords
    • Article
      • Marx's framework: value, surplus-value, prices and competition
        • Value and surplus-value
        • Two laws of exchange
        • Is the theory of surplus-value compatible with the theory of competition?
        • Approximations
        • Earlier approaches
        • Adam Smith
        • David Ricardo
        • The rebellious classical legacy in Marx
      • The transformation controversy
      • The price of net product-unallocated purchasing power labour theory of value (PNP-UPP LTV) approach to exploitation
        • Value and exploitation in the PNP-UPP LTV approach
        • A single-system approach and exploitation in any set of prices
        • An ongoing debate
      • A mathematical setting
    • See Also
    • Bibliography
    • How to cite this article

Marxian transformation problem

Duncan Foley and Gérard Duménil
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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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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Keywords

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Article

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How to cite this article

Foley, Duncan and Gérard Duménil. "Marxian transformation problem." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 28 November 2014 <http://www.dictionaryofeconomics.com/article?id=pde2008_M000400> doi:10.1057/9780230226203.1052

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