[OPE-L:1381] Determination of Value, 7

From: Andrew_Kliman (Andrew_Kliman@email.msn.com)
Date: Thu Sep 30 1999 - 12:50:33 EDT

7. Summary

What have been judged to be internal inconsistencies in Marx's
account of the transformation of values into production prices,
his law of the falling rate of profit, and other aspects of his
value theory are not in fact features of the original theory. The
inconsistencies actually result from the revisions of Marx's
theory, first formulated by Bortkiewicz, based on simultaneous
valuation. This is because simultaneous valuation is incompatible
with the principle that value is determined by labor-time.
Although Bortkiewicz recognized that Marx's own concept of value
determination was "successivist," not simultaneous, he claimed to
have proved that Marx made an error, the correction of which
required simultaneous determination.

Bortkiewicz's alleged proof is now known to be false.
Nevertheless, his followers within Marxian economics continue to
employ models in which valuation is simultaneous, even though the
theoretical conclusions derived from such models often contradict
those derived by Marx. They justify the use of these models by
arguing -- in contrast to Bortkiewicz himself -- that Marx's
concept of value determination was simultaneous; specifically,
that the value transferred from inputs to outputs depends on the
inputs' post-production replacement costs.

A thorough review of the textual evidence, presented in the latter
sections of this paper, has found no support for this claim.
Although relevant evidence is contained throughout a large number
of Marx's economic writings from the late 1850s onward, a great
deal of it has come from the 1861-83 economic manuscript, which
has only recently been translated into English. Once the issue is
carefully posed, so that temporal determination of the transfer of
value is not confused with valuation at historical cost, all of
the evidence indicates that Marx consistently held that value is
determined temporally.


Bortkiewicz, L. von. 1952. Value and Price in the Marxian System,
International Economic Papers 2.

Bortkiewicz, L. von. 1984. On the Correction of Marx's Fundamental
Theoretical Construction in the Third Volume of Capital, in E. von
Böhm-Bawerk, Karl Marx and the Close of his System (Philadelphia:
Orion Editions).

Freeman, A. 1996. The Psychopathology of Walrasian Marxism, in A.
Freeman and G. Carchedi (eds.), Marx and Non-equilibrium Economics
(Cheltenham, U.K.: Edward Elgar).

Freeman, A. and G. Carchedi (eds.). 1996. Marx and Non-equilibrium
Economics (Cheltenham, U.K.: Edward Elgar).

Kliman, A. 1996. A Value-theoretic Critique of the Okishio
Theorem, in A. Freeman and G. Carchedi (eds.), Marx and
Non-equilibrium Economics (Cheltenham, U.K.: Edward Elgar).

Kliman, A. 1999. Simultaneous Valuation and the Exploitation
Theory of Profit. Presented at Eastern Economic Association
Convention, Boston, MA, March.

Kliman, A.J. and T. McGlone. 1988. The Transformation Non-Problem
and the Non-Transformation Problem, Capital and Class 35.

Kliman, A.J. and T. McGlone. 1999. A Temporal Single-System
Interpretation of Marx's Value Theory, Review of Political Economy

Marx, K. 1977, 1981a, 1981b. Capital: A critique of political
economy (New York: Vintage Books). 1977, Vol. I; 1981a, Vol. II;
1981b, Vol. III.

Marx, K. 1986, 1987, 1988, 1989, 1991, 1994. Karl Marx, Frederick
Engels: Collected Works (New York: International Publishers).
1986, Vol. 28; 1987, Vol. 29; 1988, Vol. 30; 1989, Vol. 32; 1991,
Vol. 33; 1994, Vol. 34.

Moseley, F. 1993. Marx's Logical Method and the "Transformation
Problem," in F. Moseley (ed.), Marx's Method in 'Capital': A
reexamination (Atlantic Highlands, NJ: Humanities Press).

Naples, M. I. 1989. A Radical Economic Revision of the
Transformation Problem, Review of Radical Political Economics 21.

Okishio, N. 1961. Technical Changes and the Rate of Profit, Kobe
University Economic Review 7.

Ramos, A. 1999. Value and Price of Production: New Evidence on
Marx's Transformation Procedure, Beiträge zur
Marx-Engels-Forschung. Neue Folge 1999, pp. 00-00.

Steedman, I. 1977. Marx After Sraffa (London: New Left Books).

Warnke, G. 1993. Justice and Interpretation (Cambridge: The MIT

Wolff, R., A. Callari, and B. Roberts. 1984. A Marxian Alternative
to the Traditional Transformation Problem, Review of Radical
Political Economics 16.

Author: Prof. Andrew Kliman, Department of Social Sciences, Pace
University, Pleasantville, New York 10570, USA
 email: Andrew_Kliman@email.msn.com

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