Theory of Value, Theory of Distribution, and the Transformation Problem

I show using Sraffa's 3 sector scheme the connections between theory of value and theory of distribution, and how changes to the distribution of the surplus product effects all of the prices in society. I use this to explain the basis for the transformation problem - the problem of transforming from labour values to prices of production in Marx's Capital vol.III.

I also show how changes to distribution to the surplus can vastly affect GDP, thereby breaking the link between GDP and productivity, and that multiple different equilibrium are possible from the same aggregate supply and demand.

Algebra calculators:

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