Ricardo’s Theory of Value is Alive and Well in Contemporary Capitalism

Tsoulfidis, Lefteris (2017): Ricardo’s Theory of Value is Alive and Well in Contemporary Capitalism.

Abstract

This article begins by utilizing Ricardo's numerical examples in the effort to derive theoretical statements about the changes in relative prices induced by changes in the distributive variables and production (turnover) times. According to Ricardo, the intertemporal growth rates in relative (market) prices are not too different from the respective growth rates of production (or equilibrium) prices and depend primarily on the growth rates of unit labor values and secondarily on capital intensities. The article continues by testing the extent to which Ricardo's main thesis by utilizing input-output data from the USA and China. The derived results lend overwhelming support to Ricardo's principles.

• Item Type: MPRA Paper
• Language: English
• Keywords: David Ricardo; Value and distribution, Price-value deviations
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B3 - History of Economic Thought: Individuals > B30 - General; B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches; C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C50 - General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C67 - Input-Output Models; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D46 - Value Theory

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