The proposed solution is based on the assumption of the invariance of the general profit rate and a money wage level determined simultaneously with prices. The labour cost is determined in the value space by a given exploitation rate (based on a historical cost as the other input coefficients) while it is determined endogenously in the monetary space. This solution diverges from the neo-Ricardian solution based on the invariance of a subsistence basket. It also diverges from the Dumenil-Foley-Lipietz solution based on the invariance of the labour cost while the general profit rate is endogenously determined with prices.
Get full access to this article
View all access options for this article.
References
1.
Beaud M. and Dostaler G. (1993) La pensée économique depuis Keynes, Paris, Seuil.
2.
Benetti C. and Cartelier J. (1980) Marchands, salariat et capitalistes, Paris, Maspero
3.
Bortkiewicz L. von (1907) in P. Sweezy On the Correction of Marx's Fundamental Theoretical Construction in the Third Volume of CapitalClifton, A.M. Kelly, 1949.
4.
Dostaler G. (1978) Valeur et prix. Histoire d'un débat, Grenoble, Montreal, Presses de l'Université de Grenoble et Presses de l'Université du Québec.
5.
Dostaler G. and Lagueux M. (1985) Un échiquier centenaire, Paris-Sainte-Foy, La Découverte-Presses de l'Université du Québec.
6.
Duménil G. (1980) De la valeur aux prix de production, Paris, Economica.
7.
Duménil G. (1983) ‘Beyond the Transformation Riddle: a Labour Theory of Value’,Science and Society, vol. 47, no 4, p. 427–450.
8.
Dumenil G., Levy D. (1998) ‘The Conservation of Value: A Rejoinder to Alan Freeman’, Paper presented at the Mini-Conference of the International Working Group on Value Theory, Washington, 1997. Also published in Review of Radical Political Economics. (1998).
9.
Eatwell J., Milgate M. and Newman P. (dir) (1987-1990) The New Palgrave. Marxian Economics, London, Norton.
10.
Foley D. (1982) ‘The Value of Money, the Value of Labour Power and the Marxian Transformation Problem’,Review of Radical Political Economics, vol. 14, no 2, p. 27–47.
11.
Foley D. (1986) Understanding Capital. Marx's Economic Theory, Cambridge Mass., Harvard University Press.
12.
Foley D. (1998) ‘Recent Development in the Labour Theory of Value’, Review of Radical Political Economics (1998).
13.
Freeman A. (1984) ‘The Logic of the Transformation Problem’, in Mandel E. and Freeman A. (ed.) Ricardo, Marx, Sraffa, Thetford Press, London, pp 221–264.
14.
Freeman A. (1995) ‘Marx Without Equilibrium’,Capital & Class 56, Summer 1995, pp. 49–90.
15.
Freeman A. (2001) ‘Money’, in Critical Dictionary of Marxism, INKRIT, Berlin
16.
Freeman A., Carchedi G. (eds) (1995) Marx and Non-Equilibrium Economics, London, Elgar
17.
Freeman A., Kliman A. (1998) ‘Simultaneous and Temporal Valuation Constrasted’, Paper presented to the Marx International 11 Conference, Paris, Sept. 30 - Oct. 3 1998.
18.
Freeman A., Kliman A., Wells P.J. (2001) The New Value Controversy, Cheltenham Elgar.
19.
Freeman A., Kliman A. (2002) in L. Vasapello ed., ‘An Old Myth: The Transformation of Values into Prices in Marx's Capital’, Series in Critical Knowledge, University of Rome ‘La Sapienza’, Rome
20.
Gill L. (1996) Fondements et limites du capitalisme, Montreal, Boréal.
21.
Laibman D. (1973) ‘Value and Prices of Production: the Political Economy of the Transformation Problem’,Science and Society, Vol 4, 404–436.
22.
Laibman D. (2002) ‘Value and the Quest for the Core of Capitalism’,Review of Radical Political Economics, Vol 34, no. 2, pp. 159–178.
23.
Lipietz A. (1982) ‘The So-Called Transformation Problem Revisited’,Journal of Economic Theory, vol. 6, no 1, pp. 59–88.
24.
Loranger J.G. (1996) ‘The Transformation Problem: an Alternative Solution with an Identical Aggregate Profit Rate in the Labour Value Space and the Monetary Space’, Working paper 9625, Department of Economics, Université de Montréal.
25.
Loranger J.G. (1997) ‘The Wage Rate and the Profit Rate in the Price of Production Equation: a New Solution to an Old Problem’, Working paper 9703, Department of Economics, Université de Montréal.
26.
Loranger J.G. (1999) ‘L'importance de l'égalité du taux de profit moyen dans la solution du probléme de la transformation: une nouvelle approche d'équilibre général’, Revue économique, vol. 50, no.2, March 1999.
27.
Mandel E. and Freeman A. (dir) (1984) Ricardo, Marx, Sraffa, London, Verso.
28.
Marx K. (1967) Capital, Vol.1-III, New-York, International Publishers.
29.
Moseley F. (ed) (1993) Marx's Method in Capital.New Jersey, Humanities Press.
30.
Moseley F. (1997) The ‘New Solution’ to the Transformation Problem: a Sympathetic Critique,Paper presented to the Mini-Conference of the International Working Group on Value Theory, Washington. April 1997.
31.
Morishima M. and Seton F. (1961) ‘Aggregation in Leontief Matrices and the Labour Theory of Value’,Econometrica, vol. 29, no 2. p. 203–220.
32.
Morishima M. (1973) Marx's Economics, Cambridge, Cambridge University Press.
33.
Morishima M., Catephores G. (1978) ‘The Transformation Problem: a Markovian Process’, in Value, Exploitation and Growth, M. Morishima and G. Catephores (ed), McGraw-Hill, Chapter 6.
34.
Okishio N. (1963) ‘A Mathematical Note on Marxian Theorems’, Weltwirtschaftliches Archiv, Bd. XCI.
35.
Okishio N. (1972) ‘On Marx's Production Prices' (in Japanese), Keizaigaku Kenkyu 19, 1972, pp. 38-63
36.
Ricardo D. (1817) The Principles of Political Economy and Taxation, (with an Introduction by W.Fellner), Irwin Paperback, Illinois, 1963.
37.
Samuelson P. A. (1957) ‘Wages and Interest: a Modern Dissection of Marxian Economic Models’,American Economic Review, vol.47, no 6, p. 884–912.
38.
Samuelson P. A. (1971) ‘Understanding the Marxian Notion of Exploitation: a Summary of the So-Called Transformation Problem Between Marxian Values and the Competitive Prices’,Journal of Economic Literature, vol. 9, no 2, pp. 399–431.
39.
Seton F. (1957) ‘The Transformation Problem’Review of Economic Studies, Vol 24, 149–160.
40.
Shaikh A. (1977) ‘Marx's Theory of Value and the Transformation Problem’, in The Subtle Anatomy of Capitalism, J. Schwartz, ed., pp. 106-139.
41.
Shaikh A. (1982) ‘Neo-Ricardian Economics: a Wealth of Algebra, a Poverty of Theory’,Review of Radical Political Economics, vol. 14, no 2, pp. 67–83.
42.
Smith A. (1776) An Inquiry into the Nature and Causes of the Wealth of Nations, (with an Introduction by B. Mazlish), Bobbs-Merrill, N.Y.
43.
Sraffa P. (1960) Production of Commodities by Means of Commodities, Cambridge, Cambridge University Press.
44.
Steedman I. (1977) Marx After Sraffa, London, New Left Volumes.
45.
Steedman I. (ed) (1981) The Value Controversy, London, Verso and New Left Volumes.
46.
Sweezy P. M. (ed) (1949) Karl Marx and the Close of His System by Eugen Böhn-Bawerk and Böhn-Bawerk ‘s Critism of Marx by Rudolf Hilferding, Clifton, A.M. Kelly.
47.
Tougan-Baranovsky M. (1905) Theoretische Grundlagen des Marxismus, Leipzig, Dunker and Humbolt.
48.
Winternitz J. (1948) ‘Value and Prices: a Solution of the So-Called Transformation Problem’,Economic Journal, Vol 58, 276–280.
49.
Wolff R., Roberts B., Callari A. (1982) ‘Marx's (not Ricardo) “Transformation Problem”: a Radical Conceptualization’,History of Political Economy14, no 4, pp.564–582.
50.
Wolff R., Roberts B., Callari A. (1984) ‘A Marxian Alternative to the Traditional Transformation Problem’, Review of Radical Political Economics, vol. 16, no. 2&3.
