Discrepancies between real costs and prices

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

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: labour values, sraffian prices, discrepancies, rate of profit
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B51 - Socialist ; Marxian ; Sraffian

References

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Sinha, A.; Dupertuis, M-S. Sraffa and the Question of Equilibrium. Society of Heterodox Economists Working Paper 2007-06

Sraffa, P. (1975). Producción de Mercancias por Medio de Mercancias, Oikos-Tau Editores,1975, isbn:84-281-0030-6

Steedman, I. (1977). Marx after Sraffa, NLB, 1977, isbn:902308 49 1