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The Temporal Single‐system Interpretation of Marx's Economics: A Critical Evaluation
Author(s) -
Veneziani Roberto
Publication year - 2004
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.0026-1386.2004.00184.x
Subject(s) - economics , interpretation (philosophy) , profit (economics) , rate of profit , value (mathematics) , mathematical proof , profit rate , mathematical economics , value theory , time value of money , neoclassical economics , econometrics , microeconomics , mathematics , philosophy , epistemology , statistics , finance , linguistics , geometry
The temporal single‐system (TSS) quantitative approach to Marx's economics is analysed. It is shown that TSS models lack a clear equilibrium concept and a coherent (dis)equilibrium methodology, and that Marx's propositions on value and exploitation are tautologically obtained (i) by constructing a money costs theory of value, where by assumption values are equal to market prices, apart possibly from short‐run deviations; and (ii) by arbitrarily assuming that the undefined monetary expression of labour time is positive. In general, the shortcomings of the analytical framework make TSS claims, including the proofs of the law of the tendential fall in the profit rate, unwarranted.