Economics and Finance


Quantitative Labor Theory of Value

Authors: Erman ZENG

This research attempts to place the formal Sraffian model with linear production sets into a general equilibrium framework and to derive a quantitative transformation theorem about Marxian theory of labor value and production price. Marxian reproduction solution established a dynamic general economic equilibrium, which can be characterized by input-(total) output ratio, namely, the reduced Organic Composite of Capital divided by the total productivity rate. The labor value thus the value rate of profit (ROP) can be determined from the production price by the use of the input-output matrix analysis. The increased value ROP and the decreased price ROP of USA around 2006/2007 revealed that there was an OCC reduction. Under the framework of the dynamic Marxian general equilibrium, it is possible to undergo an optimal planning about an economic system by the regulation of the government input, entrepreneur taxation, and minimal wage rate.

Comments: 12 Pages.

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Submission history

[v1] 2016-07-02 03:56:33

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