A typology of Marxian transformation procedures with endogenous exploitation rate

Abstract

This paper constructs a unified framework to evaluate the Marxian transformation models, where the exploitation rate is an endogenous variable determined within value and price of production systems. All different procedures are based on two different value-price invariance equations. These could be chosen among either two aggregate product equations (gross or net output) or three capital invariant equations (total, variable or constant). Different combinations of invariance equations result in most Marxian solutions developed in recent decades. The solution does not imply that one model (prices) is logically prior to the other (values), but that in fact that the joint solution is needed.