A Geometric Approach to the Transformation Problem of Values (opens in new tab)

The reduction of complex labour to simple labour is an unresolved difficulty in Marx's labour theory of value, and a key obstacle that has prevented the transformation problem from being settled definitively. This paper proposes a two-step solution framework. First, we prove that as long as the macroeconomy generates a physical surplus, the reduction coefficients that respect the floor of labour-power reproduction form a bounded ``value feasible...