An Infinite Number of Techniques, One Linear Wage Curve
9 Pages Posted: 5 Dec 2017 Last revised: 6 Dec 2017
Date Written: December 5, 2017
This note demonstrates that the special case condition, needed for a simple labor theory of value (LTV), of equal organic compositions of capital does not suffice to determine technology. A model of the production of commodities, with circulating capital and all commodities basic, is analyzed. Given direct labor coefficients and labor values, an uncountably infinite number of Leontief input-output matrices yield the same wage curve under the conditions in which prices of production are proportional to labor values.
Keywords: Labor Theory of Value, Transformation Problem
JEL Classification: B24, C67, D24, D46
Suggested Citation: Suggested Citation