Monetary Expressions of Labour Time and Market Prices: Theory and Evidence from China, Japan and Korea. Issue 1 (2nd January 2017)

• Record Type: Journal Article
• Authors: Tsoulfidis, Lefteris; Paitaridis, Dimitris
• Is Part Of: Review of political economy. Volume 29:Issue 1(2017)
• Page Start: 111
• Page End: 132
• Publication Date: 2017-01-02
• Subjects: Labour theory of value -- Marxian theory -- TSSI -- vertical integration; C21 -- C43 -- C52 -- C67 -- D46 -- D57; Economics -- Periodicals; Web sites; 330
• DOI: 10.1080/09538259.2016.1260804
• Languages: English
• ISSNs: 0953-8259

Abstract

ABSTRACT: This article presents estimates of labour values and prices of production following two approaches: the first is based on the classical and Marxian theory of value and distribution; the second on the so-called 'new solution' to the 'transformation problem' and its variant, the Temporary Single-System Interpretation (TSSI). The major advantage of the latter approach is its simplicity, along with the relatively low data requirements. Our empirical findings from the economies of China, Japan and South Korea suggest that both approaches give estimates of labour values and prices of production which are extremely close to each other as well as to actual market prices. On further examination, however, we conclude that our empirical findings are absolutely consistent with the theoretical requirements of the classical approach and contradict those of the TSSI.