Income Distribution and a Simple Labor Theory of Value: Empirical Results from Comprehensive International Data

78 Pages Posted: 6 Nov 2014

Multiple version iconThere are 2 versions of this paper

Date Written: November 5, 2014

Abstract

This paper presents the results of an empirical exploration, with data from countries worldwide, of Sraffian, Marxian, and classical political economy. Income distribution, as associated with systems of prices of production, fails to describe many economies. Economies in most countries or regions lie near their wage-rate of profits frontier, when the frontier is drawn with a numeraire in proportions of observed final demands. Labor values predict market prices better than prices of production do. Labor values also predict market prices better than they predict prices of production. In short, a simple labor theory of value is a surprisingly accurate price theory for economies around the world.

Keywords: Income Distribution, Sraffian Economics, Input-Output Analysis

JEL Classification: D3, B51, D57

Suggested Citation

Vienneau, Robert L., Income Distribution and a Simple Labor Theory of Value: Empirical Results from Comprehensive International Data (November 5, 2014). Available at SSRN: https://ssrn.com/abstract=2519466 or http://dx.doi.org/10.2139/ssrn.2519466

Robert L. Vienneau (Contact Author)

Independent ( email )

209 Maple Street
Rome, NY 13440
315-336-5417 (Phone)
315-334-4964 (Fax)

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