Re: [OPE] Linear transformation between equilibrium prices and labour values

From: Phil Dunn <>
Date: Sun Dec 05 2010 - 07:46:15 EST

It seems that non-standard labour values are defined as:

p = l ( I - (A+C) )^-1 w

where standard ones are:

v = l ( I - A )^-1

In the second definition labour value added is l, labour time. In the
first it is lw. This seems to me to be saying that workers only add the
value of their wages and that, consequently, the value of capitalists'
consumption is created ex nihilo.

On Fri, 2010-12-03 at 10:04 +0100, Dave Zachariah wrote:
> Perhaps one should clarify what Ian Wright has accomplished with respect
> to the age-old transformation problem.
> If one accepts a hypothetical state of equilibrium in a capitalist
> economy in which the flow rates of profits of each industrial sector are
> equal so that the equilibrium prices are:
> p = (1+r) (pA + lw),
> then Ian has found a linear transformation between these hypothetical
> prices and standard Marxian labour values, call them v, that is
> completely determined by the properties of the system.
> p = v T
> where the matrix T = [ (I-A) ( I - (A+C) )^-1 w ] and C is the matrix
> of rentier consumption coefficients (by lending capital to each sector).
> Thus in the hypothetical equilibrium state, it is C that makes prices
> systematically diverge from labour values.

ope mailing list
Received on Sun Dec 5 13:10:00 2010

This archive was generated by hypermail 2.1.8 : Fri Dec 31 2010 - 00:00:02 EST