Munich Personal RePEc Archive

Discrepancies between real costs and prices

Melendez-Plumed, Vicenc (2011): Discrepancies between real costs and prices.

[img]
Preview
PDF
MPRA_paper_33635.pdf

Download (67kB) | Preview

Abstract

We support labour contents as an absolute and reliable measurement unit and as an accounting procedure that expresses the real costs and profits of the economic system.

As far as the labour capacity of expressing real social costs and profits is concerned, we highlight the inaccuracy in the basic economic data derived from the deviation of the rate of profit in terms of prices with regard to that which is calculated for labour values and we also demonstrate that the price system far from being independent of these values, is supported by them. Thus, there is no redundancy between price and value systems.

These results are obtained in a simple model under the following assumptions: simple – not joint - production is considered where only circulating capital exists. Every good or service considered, is a basic commodity; there is only one quality labour.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.