This article presents the marginal approach to the labour theory of value. The difficulties of the classical and Marxian labour theory of value are overcome when labour value is understood as marginal labour value analogously to marginal cost. Marginal labour value is the reciprocal of the marginal productivity of labour. Under perfect competition relative prices are equal to the ratio of marginal labour values; indeed, Pareto-optimality implies the validity of the labour theory of value but in general, even in a Pareto optimal state, there is exploitation. It is shown that in principle, a capitalist system can never be in a Pareto-optimal state. To assure a maximum productivity of labour and therefore minimum socially necessary labour values, society has to assure the socially necessary accumulation of capital and to organise the formation and control over capital democratically and collectively, a Pareto-optimum without exploitation.

/pdf/the-labour-theory-of-value-a-marginal-analysis-iikik5j5ii.pdf

The Labour Theory of Value: A Marginal Analysis

The difficulties of the classical and Marxian labour theory of value are overcome when labour value is understood as cost, analogously to marginal cost as marginal labour value. Marginal labour value is the reciprocal of the marginal productivity of labour. Under “perfect ompetition” relative prices are equal to the ratio of marginal labour values. Indeed, Pareto-optimality implies the validity of the labour theory of value. But it is shown that, in principle, a capitalist system can never be in a Pareto-optimal state. To assure a maximum productivity of labour, and therefore minimum socially necessary labour values, society has to overcome capitalism and organise the formation and control over capital collectively. This article presents the marginal approach to the labour theory of value.

https://www.jstor.org/stable/10.13169/worlrevipoliecon.5.2.0231

The Labor Theory of Value: A Marginal Analysis

Comparing a process of labor- and capital-augmenting technical change directed by capitalists' maximization of profits with a counterfactual in which decentralized innovation decisions are governed by noncapitalist property relations, I claim that if the two economies start from the same technology and capital stock there's a date T such that after T per-capita consumption is always strictly greater on the counterfactual.

/pdf/overtakable-capitalist-growth-paths-40j1ys9gin.pdf

Overtakable Capitalist Growth Paths

The application of the principles of the Sraffian theory to joint production or/and open economies further reveals the inner limits of the traditional value theory: it is found that many statements make no sense or are not verified. If, however, we are willing to consider produced means of production, positive profits, non-“golden rule” steady states, heterogeneous labour (primary inputs), and joint-products as “market failures”, as well as joint production through the lens of single production, then we are not required to move away from the classical–Marxian–neoclassical one-commodity world. In the opposite case, a specific analysis of each particular issue must be made, and the general conclusion is that open, joint-product economies should be treated as the norm, whereas closed, single-product economies and their special properties should be pointed out as limiting paradigms.

Value Theory, Joint Production, and International Trade Issues

https://www.jstor.org/stable/pdfplus/10.13169/worlrevipoliecon.5.2.0231.pdf

tHe laBor tHeory of valUe: a mar Ginal analysis

A set of simple, interrelated propositions, based on premises widely accepted by bourgeois economists.

R. M. Goodwin

Papers

Capitalism’s Golden Rule