Income Distribution and a Simple Labor Theory of Value: Empirical Results from Comprehensive International Data
78 Pages Posted: 6 Nov 2014
Date Written: November 5, 2014
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
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