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- Title
The deviation of Prices from Labor Values.
- Authors
Parys, Wilfried
- Abstract
The article discusses deviation of prices from labor values. According to the author, one of the most fundamental and often discussed problems in the classical theory of value is the relationship between prices of different commodities and the labor time required directly and indirectly to produce them, that is, the relation between prices and labor values. The two outstanding nineteenth-century thinkers on this question were, of course, economists David Ricardo and Karl Marx. Ricardo did not believe that labor values do exactly correspond to prices, but he contended that they usually form a very good approximation. Ample bibliographical evidence of this position of Ricardo's has been provided in the classic paper by economist George Stigler, who coined the phrase "Ricardo's 93 percent labor theory of value." As is well known, Marx too was very well aware that relative prices and labor values do not have to coincide, but he claimed that the direction of divergences could be explained on the basis of the magnitude of the value composition of capital of different industries.
- Subjects
LABOR; PRICES; ECONOMICS; DEVIATION (Statistics); COMMERCIAL products; LABOR time; RICARDO, David, 1772-1823; MARX, Karl, 1818-1883; STIGLER, George J., 1911-1991
- Publication
American Economic Review, 1982, Vol 72, Issue 5, p1208
- ISSN
0002-8282
- Publication type
Article