Freeman, Alan (1994): Value and the foundation of Economic Dynamics.

PDF
MPRA_paper_1206.pdf Download (696kB)  Preview 
Abstract
This article constructs timevarying labour value measures free of such restrictions and shows that they call for a radical reevaluation of this century's debate on value. We exhibit a counterexample to the Okishio theorem in which laboursaving innovation leads to a continuouslyfalling profit rate, and a dynamic approach to the classical problem of transforming values into prices in which the sum of values is equal to the sum of prices while the sum of profits remains equal to the sum of surplus values. Elsewhere we have exhibited a computer simulation model using these values. A dynamic value measure is thus practical, necessary, and the basis for a general reconstruction of economics.
Item Type:  MPRA Paper 

Institution:  The University of Greenwich 
Original Title:  Value and the foundation of Economic Dynamics 
Language:  English 
Keywords:  Profit Rate; Okishio Theorem; Marxist economics; Value Theory; TSSI 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B1  History of Economic Thought through 1925 > B12  Classical (includes Adam Smith) O  Economic Development, Technological Change, and Growth > O4  Economic Growth and Aggregate Productivity > O41  One, Two, and Multisector Growth Models B  History of Economic Thought, Methodology, and Heterodox Approaches > B1  History of Economic Thought through 1925 > B14  Socialist; Marxist 
Item ID:  1206 
Depositing User:  Alan Freeman 
Date Deposited:  18. Dec 2006 
Last Modified:  12. Feb 2013 05:18 
References:  Alberro, J and Persky, J, 1979. "The Simple Analytics of Falling Profit Rates, Okishio's Theorem and Fixed Capital", Review of Radical Political Economics,vol7, Spring. Andrews, M, 1984. "On the Importance of the Equilibrium Assumption to the Okishio Theorem Result". Working Paper, Rutgers University. Andrews, M, 1987. "Technical Change in Postwar U.S. Agriculture and the Falling Rate of Profit." Working Paper, Rutgers University, Cook College, New Brunswick, New Jersey. Baumol, B. Economic Dynamics (?date/pubs?) Birkhoff, G and MacLane, S, 1963. A Survey of Modern Algebra. New York:Macmillan. von Bortkiewicz, L, 1951. "Value and Price in the Marxian System", International Economic Papers 2. Carchedi, G, 1992. Frontiers of Political Economy. London:Verso Carchedi, G, 1984 'The Logic of Prices as Values', Economy and Society Vol 13 No 4, pp431455 Carchedi, G, 'Marxian Price Theory and Modern Capitalism', International Journal of Political Economy, 1988, Fall, pp6109 Carnap, R, 1958. Introduction to Symbolic Logic and its Applications. New York: Dover Fine, B and Harris, L, 1976 "Controversial Issues in Marxist Economic Theory", in Milliband and Saville, eds, Socialist Register. Fine, B and Harris, L, 1979. Rereading Capital. London:McMillan; New York:Comlumbia University Press. Freeman, A, 1990. A Dynamic Simulation Model of a Capitalist Economy. CSE conference 1991 Gandolfo. Economic Dynamics (?date?pubs?) Gantmacher, F. R., The Theory of Matrices, Volume II. New York:Chelsea. Gershgorin, S, 1931. Über die Abrenzung der Eigenwerte einer Matrix. Izv Akad Nauk SSSR Ser Mat. 7, 749754; 16, Giussani, P 1992 "The Determination of Prices of Production" in International Journal of Political Economy, Vol 21, No 4, Winter 19912 Goodwin, R and Punzo, L 1987. The Dynamics of a Capitalist Economy. Boulder, Colorado: Westview and Cambridge:Polity Hahn, F, 1984. Keynesian Economics and General Equilibrium Theory: Reflections on Some Current Debates in Hahn, F Equilibrium and Macroeconomics. Oxford: Blackwell Harcourt, G C, 1972. Some Cambridge Controversies in the Theory of Capital. Cambridge: Cambridge University Press. Harrod, R F, 1937. An Essay on Dynamics. Hunt, E and Schwartz, J. The Subtle Anatomy of Capitalism Laibman, D, 1987 "Growth, Technical Change and Cycles: Simulation Models in Marxist Economic Theory", Science and Society, Vol 51, Winter 19871988, pp 414438 Mandel, 1974 Late Capitalism. London, Verso Mandel 1984. "Gold, Money and the Transformation Problem" in Mandel and Freeman (1984) Mandel & Freeman, (eds) 1984 Marx, Ricardo and Sraffa London:Verso Marx, 1968a. Theories of Surplus Value, Part I. London:Lawrence and Wishart Marx, 1968b. Theories of Surplus Value, Part II. London:Lawrence and Wishart Marx, 1968c. Theories of Surplus Value, Part III. London:Lawrence and Wishart Marx, 1977a. Capital, Volume I. London:Penguin Marx , 1972. Capital, Volume III. London:Penguin Marx, 1976. Value Studies by Marx. London:New Park Marx 1977b Results of the Immediate Production Process, printed in Marx 1977a May, K, 1951. "Value and Price of Production: a Note on Winternitz's Solution." Economic Journal, December. Mendelson, E, 1964. Introduction to Mathematical Logic. New Jersey: Van Nostrand. Miconi, B, "On Harrod's Model and Instability", (?date & source?) Morishima and Catephores, 1979. 'The Transformation Problem: a Markov Process', Value, Exploitation and Growth, McGrawHill. Morishima, M, 1973. Marx's Economics, Cambridge Nakicenovic, N, 1988. Dynamics of Change and Long Waves. Working Paper,Laxenburg (Austria): International Institute for Applied Systems Analysis(IIASSA) Naples, M, 1985. "Dynamic Adjustment and Longrun Inflation in a Marxian Model", Journal of PostKeynesian Economics Fall 1985, Vol 8 No 1 Naples, M, 1988. "Is a Uniform Profit Rate Possible? A LogicalHistorical Analysis", Science and Society Vol 52 No. 1, Spring 1988, pp8393. Naples, M, "Time, Money, Equilibrium and the Labour Theory of Value." Working Paper, Rutgers University, New Brunswick, New Jersey. Naples, M "Methodology and the Transformation Problem", Working Paper, Rutgers University Okishio, N, 1961. "Technical Change and the Rate of Profit", Kobe University Economic Review, No. 7, 8699 Okishio, N, 1972. 'On Marx's Production Prices', Keizaigaku Kenkyu, 19. Pasinetti, (?). Lectures in the Theory of Production. Cambridge:(?) Salama, 1979. Sur La Valeur, Paris Savran, S, 1978. "Surplus, Wages and Reproduction: Contradictions of Sraffian Economics". Working Paper, Centro Studi di Economia Politica, 20124 Milano via Tadino 33. Savran, S, 1979. "On the Theoretical Consistency of Sraffa's Economics." Capital and Class, 12. Savran, S, 1980. "Confusions Concerning Sraffa (and Marx): Reply to Critics", Capital and Class, 7. Savran, S, 1984 in E Mandel and A Freeman (eds), op cit. Semmler, 1984. Competition, Monopoly, and Differential Profit Rates. New York: Columbia University Press Seneta, E, 1973 Nonnegative Matrices: an Introduction to Theory and Applications, London:George Allen and Unwin Seton, F, 1957. "The Transformation Problem", Review of Economic Studies, Vol. 24 pp149160. Shaikh, A, 1973. 'The Socalled Transformation Problem: Marx vindicated', mimeograph, New School for Social Research, New York Shaikh, A, 1977, 'Marx's Theory of Value and the "Transformation Problem"' in J Schwartz (ed) The Subtle Anatomy of Capitalism. Goodyear. Shaikh, A, 1981 "The Poverty of Algebra" in I. Steedman(ed) The Value Controversy. London: Verso Shaikh, A, 1984. "The Transformation from Marx to Sraffa" in Mandel and Freeman (eds) op cit Sraffa, P, 1960. The Production of Commodities by means of Commodities. London: Cambridge University Press. Steedman, I 1977. Marx After Sraffa. London: Verso Varga, R Matrix Iterative Analysis, 1963. New Jersey:PrenticeHall. Winternitz, J, 1948. "Values and Prices: a Solution of the Socalled Transformation Problem." The Economic Journal, June Wolff, R, Callari, A and Roberts, B, 1984 "A Marxian Alternative to the Traditional 'Transformation Problem'" in Review of Radical Political Economics Vol 16(2/3) 115135 (1984) 
URI:  http://mpra.ub.unimuenchen.de/id/eprint/1206 