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  • Print publication year: 1994
  • Online publication date: February 2010

4 - Marxian categories and national accounts: Labor value calculations

Summary

The previously derived mappings describe the relation between input–output accounts and the money value form of Marxian categories, on both the revenue and use sides of the accounts. We now turn to the corresponding calculation of the labor value form of these same categories. In what follows, we will outline a procedure first developed in Shaikh (1975) and extended and applied by Khanjian (1989). Only the basic elements will be presented here, since a fuller development is beyond the scope of this book.

Calculating labor value magnitudes

Let us begin by recalling our money value mapping previously summarized in Figure 3.11 and Table 3.12. Figure 4.1 is a simplified version of Figure 3.11. In it, we have explicitly labeled elements of the production and trade rows so as to facilitate later discussion. Thus the (purchaser) price of the total intermediate input of the productive sectors Mp = (Mp)p + (Mp)t, where (Mp)p represents the total producer price of the commodities used as intermediate input in the productive sectors and (Mp)t represents the trading margin on these same goods. The same breakdown holds for all input and final-demand elements. In addition, final demand has been considered into two main categories: the consumption of productive workers CONWp; and surplus demand SD, which is the remainder of final demand – equal to the sum of the consumption of unproductive (trade and royalties) workers and capitalists, investment, net exports, and government expenditures.