A Capital Invariant Solution to the Marxian Transformation Problem
Review of Radical Political Economics
Published online on November 27, 2015
Abstract
This paper constructs a new solution to the Marxian transformation problem in a simple reproduction economy. It imposes two invariant equations using both constant and variable capital, separately, in order to solve the price and value system. This solution produces a profit rate that lays in between the "new interpretation" and labor-valued profit rates.