<<
>>

Proportionality of prices and labour values

Dmitriev next turned to the investigation of relative prices, which in his framework are given by:

or

whereDmitriev confirmed Ricardo’s finding that relative prices are propor­

tional to relative labour values in two special cases only: the first, when the series of dated quantities of labour are linearly dependent pairwise, that is, when the commodi­ties exhibit “identical organic composition”; and the second when the rate of profits is zero.

<< | >>
Source: Faccarello G., Kurz H.D.(eds.). Handbook on the History of Economic Analysis, Volume 1: Great Economists Since Petty and Boisguilbert. Cheltenham: Edward Elgar,2016. — 813 p.. 2016

More on the topic Proportionality of prices and labour values: