Gabriel Montes-Rojas

Abstract

This paper constructs a new solution to the Marxian transformation problem in a simple reproduction economy. It imposes two invariant equations using both constant and variable capital, separately, in order to solve the price and value system. This solution produces a profit rate that lays in between the “new interpretation” and labor-valued profit rates.

From: Review of Radical Political Economics 2017 49 (1)

Editor: Wang Yi