scholarly journals The Transformation Problem of Values into Prices of Production: Marx Errors or an Inattentive Reading of 'Capital'?

2021 ◽  
Author(s):  
Valeriy Kalyuzhnyi
Keyword(s):  
Numerical Models ◽  
Alternative Methods ◽  
Double Counting ◽  
Real Wages ◽  
Mutual Compensation ◽  
Separate Spheres ◽  
Equilibrium Prices ◽  
Calculation Algorithms ◽  
Rate Of Profit ◽  
Production Prices

The author presents the results of the discovery in Marx's works of the disparate elements of the theory of the original transformation of value into prices and the establishment of the general rate of profit. These results show:(a) Marx's tables in Chapter 9 of Volume III of Capital do not represent the usual interrelated branches of the economy, but particular spheres of production, exempt from the double-counting of profits and wages, and producing only final commodities. The total value of these commodities is equal to the net social product.(b) Marx carried out the original transformation of values into prices under the condition that wages remain unchanged. As a result, the first (chief) macroeconomic equality is fulfilled—the sum of the production prices for all net social products must be equal to the sum of its values. Also is fulfilled the second macroeconomic equality—the sum of profits of all sectors forming separate spheres of production must be equal to the sum of surplus values.(c) Marx assumed that the original transformation takes place in two stages: in the first stage, average rates of profit are formed in separate spheres of production, comprising two sectors of production: A and B. Sector A produced of constant capital for the sphere's own need. Sector B releases the final product for an exchange with other particular spheres. In the second stage, is established the general rate of profit in sectors B. A property of the original conversion is some change in the level of real wages, especially noticeable when using numerical models with a few spheres of commodity production. Therefore, Marx introduces the hypothesis of mutual compensation of positive and negative deviations of prices from the values of commodities. The hypothesis is fully confirmed under the conditions of the law of large numbers.(d) Marx also explains that non-equilibrium original prices of production, in which demand and supply of final goods do not coincide, can be transformed into equilibrium prices of production. For this to happen, corresponding changes in monetary wages, prices of constant capital, and the general rate of profit are necessary. However, the attainment of equilibrium prices was regarded by Marx as a secondary issue. At equilibrium prices, only the first (chief) macroeconomic equality is fulfilled.The author in developing alternative methods of transforming value into original and equilibrium prices of production uses all of the above elements of the theory of transformation of values into production prices. First, he restores the double counting of profits and wages in Marx's table. Second, he applies an iterative procedure of sequentially establishing the average and general rate of profit in the sectors and spheres of commodity production.The paper proposes new iterative calculation algorithms in the Excel program for the original and equilibrium transformation of values into production prices. The author tested the algorithms using the Wolfram Mathematica software. He also developed a method for converting the equilibrium production prices of goods back to their initial absolute values. This method refutes the well-known “eraser algorithm” by P. Samuelson. Ultimately, the author argues that Marx does not have the errors of transformation that his critics have attributed to him for so long.

scholarly journals The Transformation Problem of Values into Prices of Production: Marx Errors or an Inattentive Reading of 'Capital'?

2021 ◽  
Author(s):  
Valeriy Kalyuzhnyi
Keyword(s):  
Numerical Models ◽  
Alternative Methods ◽  
Double Counting ◽  
Real Wages ◽  
Mutual Compensation ◽  
Separate Spheres ◽  
Equilibrium Prices ◽  
Calculation Algorithms ◽  
Rate Of Profit ◽  
Production Prices

The author presents the results of the discovery in Marx's works of the disparate elements of the theory of the original transformation of value into prices and the establishment of the general rate of profit. These results show:(a) Marx's tables in Chapter 9 of Volume III of Capital do not represent the usual interrelated branches of the economy, but particular spheres of production, exempt from the double-counting of profits and wages, and producing only final commodities. The total value of these commodities is equal to the net social product.(b) Marx carried out the original transformation of values into prices under the condition that wages remain unchanged. As a result, the first (chief) macroeconomic equality is fulfilled—the sum of the production prices for all net social products must be equal to the sum of its values. Also is fulfilled the second macroeconomic equality—the sum of profits of all sectors forming separate spheres of production must be equal to the sum of surplus values.(c) Marx assumed that the original transformation takes place in two stages: in the first stage, average rates of profit are formed in separate spheres of production, comprising two sectors of production: A and B. Sector A produced of constant capital for the sphere's own need. Sector B releases the final product for an exchange with other particular spheres. In the second stage, is established the general rate of profit in sectors B. A property of the original conversion is some change in the level of real wages, especially noticeable when using numerical models with a few spheres of commodity production. Therefore, Marx introduces the hypothesis of mutual compensation of positive and negative deviations of prices from the values of commodities. The hypothesis is fully confirmed under the conditions of the law of large numbers.(d) Marx also explains that non-equilibrium original prices of production, in which demand and supply of final goods do not coincide, can be transformed into equilibrium prices of production. For this to happen, corresponding changes in monetary wages, prices of constant capital, and the general rate of profit are necessary. However, the attainment of equilibrium prices was regarded by Marx as a secondary issue. At equilibrium prices, only the first (chief) macroeconomic equality is fulfilled.The author in developing alternative methods of transforming value into original and equilibrium prices of production uses all of the above elements of the theory of transformation of values into production prices. First, he restores the double counting of profits and wages in Marx's table. Second, he applies an iterative procedure of sequentially establishing the average and general rate of profit in the sectors and spheres of commodity production.The paper proposes new iterative calculation algorithms in the Excel program for the original and equilibrium transformation of values into production prices. The author tested the algorithms using the Wolfram Mathematica software. He also developed a method for converting the equilibrium production prices of goods back to their initial absolute values. This method refutes the well-known “eraser algorithm” by P. Samuelson. Ultimately, the author argues that Marx does not have the errors of transformation that his critics have attributed to him for so long.

scholarly journals Artificial Intelligence Application on Sediment Transport

2021 ◽  
Vol 9 (6) ◽  
pp. 600
Author(s):  
Hyun Dong Kim ◽  
Shin-ichi Aoki
Keyword(s):  
Sediment Transport ◽  
Numerical Models ◽  
Beach Nourishment ◽  
Hydraulic Model ◽  
Alternative Methods ◽  
Cross Sectional ◽  
Sand And Gravel ◽  
Incident Waves ◽  
Artificial Intelligence Application ◽  
Deep Learning Model

When erosion occurs, sand beaches cannot maintain sufficient sand width, foreshore slopes become steeper due to frequent erosion effects, and beaches are trapped in a vicious cycle of vulnerability due to incident waves. Accordingly, beach nourishment can be used as a countermeasure to simultaneously minimize environmental impacts. However, beach nourishment is not a permanent solution and requires periodic renourishment after several years. To address this problem, minimizing the period of renourishment is an economical alternative. In the present study, using the Tuvaluan coast with its cross-sectional gravel nourishment site, four different test cases were selected for the hydraulic model experiment aimed at discovering an effective nourishment strategy to determine effective alternative methods. Numerical simulations were performed to reproduce gravel nourishment; however, none of these models simultaneously simulated the sediment transport of gravel and sand. Thus, an artificial neural network, a deep learning model, was developed using hydraulic model experiments as training datasets to analyze the possibility of simultaneously accomplishing the sediment transport of sand and gravel and supplement the shortcomings of the numerical models.

The rate of profit and economic stagnation in the United States economy

1997 ◽  
Vol 1 (1) ◽  
pp. 161-174
Author(s):  
Fred Moseley
Keyword(s):  
World War Ii ◽  
The United States ◽  
Real Wages ◽  
Debt Burden ◽  
The Great Depression ◽  
Us Economy ◽  
United States Economy ◽  
The Us ◽  
Post War ◽  
Rate Of Profit

AbstractIn the first thirty years after World War II, the US economy performed very well. The rate of growth averaged 4—5%, the rate of unemployment was seldom above 5%, inflation was almost non-existent (1—2%), and the living standards of workers improved steadily. These were the ‘good old days'. However, this long period of expansion and prosperity ended in the 1970s. Since then, both the rate of unemployment and the rate of inflation have been much higher than before, and the average real wages of workers (i.e. the purchasing power of wages) have declined some 20%. Productivity growth has also slowed down and the debt burden of both capitalist enterprises and the Federal government has increased dramatically. It is in this sense that we may refer to the ‘economic crisis’ of the US economy over the last two decades. This crisis has certainly not been as severe as the Great Depression of the 1930s, but the economic performance has been significantly worse than in the early post-war period.

scholarly journals Normal incidence sound insulation provided by Sonic Crystal Acoustic Screens made from rigid scatterers – assessment of different simulation methods

Acta Acustica ◽  
2021 ◽  
Vol 5 ◽  
pp. 28
Author(s):  
M.P. Peiró-Torres ◽  
M. Ferri ◽  
Luis M. Godinho ◽  
Paulo Amado-Mendes ◽  
Francisco Jose Vea Folch ◽  
...  
Keyword(s):  
Numerical Models ◽  
Traffic Noise ◽  
Normal Incidence ◽  
Alternative Methods ◽  
Propagation Path ◽  
Sound Insulation ◽  
Technical Solution ◽  
Simulation Methods ◽  
Interference Phenomenon ◽  
Sonic Crystal

Sonic crystal acoustic screens have been in progressive research and development in the last two decades as a technical solution for mitigating traffic noise. Their behaviour is quite different from that observed in classical barriers, with the latter being based on physically blocking the direct sound propagation path (only allowing diffracted noise to reach sensible receivers), and sonic crystals providing attenuation efficiency based on the creation of “band-gaps” at specific frequency ranges, due to the Bragg’s interference phenomenon. The distinct physical mechanisms of these two types of noise barriers complicates the use of classical simplified or even numerical models developed for traditional barriers to simulate and predict the attenuation performance of a sonic crystal, and alternative methods become thus required. In the acoustics scientific literature, several authors have proposed estimation and simulation methods based on different numerical tools to predict the sound insulation provided by these new noise abatement solutions. This paper presents a comparative evaluation of some of these methods, with emphasis on the assessment of their accuracy versus memory usage in order to determine which one is the most suitable for optimization methodologies in the design of new devices with improved acoustic performance.

Value, Price and Profit

2021 ◽  
pp. 001946622110172
Author(s):  
Prabhat Patnaik
Keyword(s):  
Working Class ◽  
John Stuart Mill ◽  
The Political ◽  
Real Wages ◽  
Economic Level ◽  
Political Struggles ◽  
Novel Reading ◽  
Rate Of Profit ◽  
The Relationship

Value Price and Profit was a speech delivered by Marx at a meeting of the First International where he used ideas of his not-yet-published Capital to present what later came to be known as the “w-r-frontier”. He argued on its basis, against the position of John Stuart Mill, that workers as a whole can obtain higher real wages at the expense of the capitalists’ rate of profit. The relationship between economic and political struggles outlined in Value, Price and Profit is a novel one: the weakening of working-class capacity to intervene at the economic level is supposed to bring on the agenda greater political struggles. This novel reading of the relationship between the economic and the political also has much relevance for today’s world.

Production prices and general equilibrium prices

1989 ◽  
Vol 18 (3) ◽  
pp. 263-280 ◽  
Author(s):  
Rose-Anne Dana ◽  
Monique Florenzano ◽  
Cuong Le Van ◽  
Dominique Levy
Keyword(s):  
General Equilibrium ◽  
Equilibrium Prices ◽  
Production Prices

scholarly journals White Elephants and Other Non-basic Commodities: Piero Sraffa and Krishna Bharadwaj on the Role and Significance of the Distinction between Basics and Non-basics

2021 ◽  
pp. 001946622110172
Author(s):  
Heinz D. Kurz ◽  
Neri Salvadori
Keyword(s):  
General Result ◽  
Alternative Methods ◽  
Double Counting ◽  
Switch Point ◽  
Basic Commodity ◽  
Jel Code

After the publication of Production of Commodities by Means of Commodities ( Sraffa, 1960 ), a lot of attention was devoted to ‘reswitching’, that is to the fact that a technique is cost-minimising at two disconnected ranges of the rate of profits and not so in between these ranges. We owe Krishna Bharadwaj (1970, Schweizerische Zeitschrift für Volkswirtschaft und Statistik, 106, 409–429) an important contribution to the debate by stating and proving a general result concerning the maximum number of switches between two techniques that have at least one switch point on the wage-frontier. She proved that the maximum number of switches coincides with the number of distinct commodities, without double counting, that enter directly or indirectly into at least one of the alternative methods of production. This means that if the alternative methods produce a commodity that is basic in both techniques, then non-basics in both techniques play no role in this, whereas if the alternative methods produce a non-basic commodity in at least one technique, then a role is played also by those non-basics that enter directly or indirectly into the production of at least one of the alternative methods of production. JEL Code: B12, B21, B31, B51, D24, D51

Numerical Models of Gas Flow and Heat Transfer in Microscale Channels: Capturing Rarefaction Behaviour Using a Constitutive Scaling Approach

2007 ◽  
Author(s):  
Lynne O’Hare ◽  
Jason M. Reese
Keyword(s):  
Gas Flow ◽  
Rarefied Gas ◽  
Numerical Models ◽  
Constitutive Relations ◽  
Alternative Methods ◽  
Navier Stokes ◽  
Rarefied Gas Flows ◽  
Scaling Models ◽  
Flow Features ◽  
Microsystem Design

In this paper we discuss the physics of rarefied gas flows at the micro-scale, including discontinuities of momentum and energy at solid boundaries, and the Knudsen layer (a region within one to two mean free paths of any solid surface where non-equilibrium flow features are dominant.) We describe how scaling the constitutive relations of the Navier-Stokes-Fourier equation set can capture key rarefaction behaviour observed in gas microsystems, and how a new implementation of this approach in fully compressible, non-isothermal CFD facilitates the analysis of “real-world” engineering problems. Details of our implementation are given, as are the results of a compressible Couette flow case study, successfully validated against available data sources. We also discuss the relative merits of two published constitutive scaling models, comparing their micro-flow predictions for half-space problems, and contrasting their individual means of application. Some practical implications of using constitutive-relation scaling are explained, and some advantages of the technique compared to alternative methods are outlined. To conclude, we examine some limitations of the method, and outline avenues of research that could potentially broaden the scope of what is a flexible and efficient approach to gas microsystem design using CFD.

The Chilean economy, an analysis of the dynamics of profits, investments and production: A Marxist approach

2021 ◽  
pp. 030981682110547
Author(s):  
Gonzalo Durán ◽  
Michael Stanton
Keyword(s):  
Economic Analysis ◽  
Capital Accumulation ◽  
Alternative Methods ◽  
Hours Worked ◽  
Surplus Value ◽  
Organic Composition ◽  
High Copper ◽  
Marxist Approach ◽  
Unpaid Labour ◽  
Rate Of Profit

This article aims to examine the dynamics of the Chilean economy as a consequence of actions taken by companies whose aim is to make profits. As such, the economic analysis used is Marxist and makes use of those classical indicators described in Capital (Rate of Surplus-Value, Organic Composition of Capital and Rate of Profit). It is maintained that with the Marxist method, we can discover that behind the accumulation of incomes lies the fact that out of each 8 hours worked, only 3 finance wages and 5 benefit the owners of capital. That fraction of the unpaid labour received by capital but invested back as new capital, plus that ‘excess’ surplus value that is consequence of high copper prices, raises the physical, but not necessarily the value, capital-per-worker ratio. As a consequence, that relation of exploitation to capital accumulation, which Marx called the Rate of Profit, is found to fall, rise and then fall again. We understand that various approaches have been made to calculate the classical indicators and include some of them as alternative methods in our results.

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