Munich Personal RePEc Archive

The circuit analysis, the monetary economy of production and the multisectorial analysis. Proposals for a S.N.A. built on income-value. A "detransformation " of prices in values

Vallageas, Bernard (2010): The circuit analysis, the monetary economy of production and the multisectorial analysis. Proposals for a S.N.A. built on income-value. A "detransformation " of prices in values.

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Abstract

In the framework of the circuit theory and of the monetary economiy of production (as it may be described by Keynes' Treatise on Money), we consider the problem of the retained profit and of its evaluation, both at the macroeco­nomic level and at the level of each firm. The retained profit is due to the existence of two measures for the commodities: the measure by their income-value, i.e. the income paid by firms to households for the production of the commidities, and the measure by their selling prices. The retained profit is the measure of self financed investment (SFI) . At the macroeco­nomic level investment, and therefore SFI, can only be evaluated by the income-value. But at the microeconomic level each firm, and too at the mesoeconomic level each industry, evaluates its investement, and therefore its SFI, by the selling price. This difference of evaluation implies an inconstency, therefore we suggest a method to evaluate the investment of each firm, and thus of its profit, by income-value. We have applied this method to evaluate the retained profit for the different French activities for the year 2007.

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