Chatzarakis, Nikolaos and Tsaliki, Persefoni and Tsoulfidis, Lefteris (2022): Does the Labour Theory of Value Explain Economic Growth? A Modern Classical View.

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Abstract
The labour theory of value (LTV) is the cornerstone of the classical and Marxian political economy for it explains the creation and valuation of wealth in capitalist societies and it remains the chief analytical tool in investigating economic phenomena. In this respect macroscopic phenomena, which include many distinct production processes evolving over long gestation periods, conceal the transformation of labour values into their monetary expression (prices). Consequently, the use of the LTV on a grand and dynamic scale is usually considered inapplicable in the construction of macroeconomic models. The classical/Marxian analysis is conducted through either multidimensional multisectoral models or the solution of the summation problem of heterogeneous commodities. However, many studies have corroborated the dynamic aspects of the LTV and probed for a reduction in the dimensionality of macroeconomic models. In this paper, on the one hand, we restate the dynamic aspects of the LTV over time and, on the other hand, ascertain its utility as a longrun macroeconomic tool. The way to proceed is to model the divergence of actual prices and quantities of commodities from their equilibria in a multisectoral economy and establish that the longrun behaviour of the system mirrors the longrun movement of the labour values.
Item Type:  MPRA Paper 

Original Title:  Does the Labour Theory of Value Explain Economic Growth? A Modern Classical View 
Language:  English 
Keywords:  labour theory of value; heterodox microeconomics; microfounding of economic growth; dynamic inputoutput analysis 
Subjects:  B  History of Economic Thought, Methodology, and Heterodox Approaches > B5  Current Heterodox Approaches > B51  Socialist ; Marxian ; Sraffian C  Mathematical and Quantitative Methods > C6  Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61  Optimization Techniques ; Programming Models ; Dynamic Analysis D  Microeconomics > D4  Market Structure, Pricing, and Design > D46  Value Theory D  Microeconomics > D5  General Equilibrium and Disequilibrium > D57  InputOutput Tables and Analysis E  Macroeconomics and Monetary Economics > E3  Prices, Business Fluctuations, and Cycles > E32  Business Fluctuations ; Cycles 
Item ID:  112824 
Depositing User:  Mr. Nikolaos Chatzarakis 
Date Deposited:  27 Apr 2022 13:49 
Last Modified:  27 Apr 2022 13:49 
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URI:  https://mpra.ub.unimuenchen.de/id/eprint/112824 