Publication:
Alternative Approaches to Labor Values and Prices of Production: Theory and Evidence

dc.contributor.authorBasu, Deepankar
dc.contributor.authorMoraitis, Athanasios
dc.contributor.departmentDepartment of Economics, UMass Amherst
dc.contributor.departmentDepartment of Economics, UMass Amherst
dc.date2023-10-02T18:52:55.000
dc.date.accessioned2024-04-26T16:31:56Z
dc.date.available2023-03-19T00:00:00Z
dc.date.issued2023-01-01
dc.description.abstractIn this paper, we discuss three approaches to estimating classical prices of production(long run equilibrium prices) in both a circulating capital model and a model that includes capital stock: the Standard Interpretation of Marx’s value theory, the New Interpretation of Marx’s value theory, and the Sraffian approach to prices of production. We add two refinements to both models: (a) allowing for differential wages rates across industries; and(b) taking account of unproductive industries in labor value calculations. We implement(a) the circulating capital models using harmonized input-output data from the World Input Output Database for 37 countries for the period 2000–2014, and (b) the model with capital stock for the U.S. economy using input-output and other relevant data for 2020.For all models, we estimate labor values, prices of production and the uniform rate of profit. We test for deviation between relative labor values and relative prices of production using both regression and non-regression-based methods. For both the circulating capital model and the model with capital stock, we find that the vector of relative labor values and the vector of relative prices of production are far apart in terms of both regression and non-regression-based measures.
dc.identifier.doihttps://doi.org/10.7275/kxh6-m529
dc.identifier.urihttps://hdl.handle.net/20.500.14394/22335
dc.relation.urlhttps://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1351&context=econ_workingpaper&unstamped=1
dc.rightsUMass Amherst Open Access Policy
dc.source.issue2023-4
dc.source.statuspublished
dc.subjectabor value
dc.subjectprice of production
dc.subjectuniform rate of profit
dc.subjectclassical theory of prices
dc.subjectEconometrics
dc.subjectEconomics
dc.subjectEconomic Theory
dc.titleAlternative Approaches to Labor Values and Prices of Production: Theory and Evidence
dc.typearticle
dc.typearticle
digcom.contributor.authorisAuthorOfPublication|email:dbasu@econs.umass.edu|institution:Department of Economics, UMass Amherst|Basu, Deepankar
digcom.contributor.authorisAuthorOfPublication|email:athanasiosmo@umass.edu|institution:Department of Economics, UMass Amherst|Moraitis, Athanasios
digcom.date.embargo2023-03-19T00:00:00-07:00
digcom.identifierecon_workingpaper/347
digcom.identifier.contextkey34222633
digcom.identifier.submissionpathecon_workingpaper/347
dspace.entity.typePublication
relation.isAuthorOfPublication43cb2d2a-4fa2-45e3-a5a0-746b6aad6849
relation.isAuthorOfPublication.latestForDiscovery43cb2d2a-4fa2-45e3-a5a0-746b6aad6849
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