Revisiting the 'transformation problem' and iterative solutions under the light of intra- and inter-sectoral competition

Nikolaos Chatzarakis ()
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Nikolaos Chatzarakis: Department of Economics, New School For Social Research, USA

No 2503, Working Papers from New School for Social Research, Department of Economics

Abstract: The classical system of production assumes that (i) competition between labourers and capitalists (and among labourers) results to a uniform wage, (ii) competition among capitalists within each industry to a uniform price, and (iii) competition among capitalists in different sectors to a uniform rate of profit. These are the laws of competition Marx attempted to incorporate into his 'transformation' process. Okishio and Shaikh showed that such a `transformation algorithm' indeed exists. However, the inter-sectoral competition wass emphasised, while the intra-sectoral competition almost entirely ignored. In this work, we attempt to incorporate this phase of competition and extend the Okishio-Shaikh algorithm.

Keywords: Labour theory of value; laws of competition; transformation problem; regulating prices (search for similar items in EconPapers)
JEL-codes: B14 B24 B51 D46 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2025-02
New Economics Papers: this item is included in nep-pke
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