What does the transformation problem look like if we try to
do it backwards? That is, most "solutions" follow Marx and
attempt to explain the transformation of values into prices of
production. Why not transform prices of production into values?
That is, assume a set of capitals in which the rate of profit is
uniform and the compositions of capital differ. In moving from
this initial state which we call Period I to the next, assume
that one of the capitals which is above average in composition
grows at a faster rate than the others, the rate of profit remaining
the same. Does an hour of abstract labor in Period I create the
same amount of value as it does in Period II? The same problem
arises if a capital of lower than average compostion grows at a
faster than the others.
John