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| Main Author: | |
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| Format: | Preprint |
| Published: |
2026
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| Subjects: | |
| Online Access: | https://arxiv.org/abs/2603.09450 |
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| _version_ | 1866908878906589184 |
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| author | Lyu, Jiyuan |
| author_facet | Lyu, Jiyuan |
| contents | This paper proposes a change in perspective on the ``transformation of values'' problem: from ``searching for a single constant solution'' to ``characterizing the allocation space under objective constraints imposed by the physical production network.'' Building an input--output model, we show mathematically that whenever the macroeconomy features a physical surplus, the set of skilled-to-simple labor reduction vectors that can sustain the subsistence floor of the entire labor force forms a bounded value-feasible set . Within this multidimensional region, the classical ``two great macro equalities'' necessarily hold simultaneously for a reasonable range of profit rates. Hence, without violating the physical minimum conditions for reproduction, the law of value and the nominal price system can be made logically consistent. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2603_09450 |
| institution | arXiv |
| publishDate | 2026 |
| record_format | arxiv |
| spellingShingle | Feasible Sets and the Transformation of Values Lyu, Jiyuan Theoretical Economics This paper proposes a change in perspective on the ``transformation of values'' problem: from ``searching for a single constant solution'' to ``characterizing the allocation space under objective constraints imposed by the physical production network.'' Building an input--output model, we show mathematically that whenever the macroeconomy features a physical surplus, the set of skilled-to-simple labor reduction vectors that can sustain the subsistence floor of the entire labor force forms a bounded value-feasible set . Within this multidimensional region, the classical ``two great macro equalities'' necessarily hold simultaneously for a reasonable range of profit rates. Hence, without violating the physical minimum conditions for reproduction, the law of value and the nominal price system can be made logically consistent. |
| title | Feasible Sets and the Transformation of Values |
| topic | Theoretical Economics |
| url | https://arxiv.org/abs/2603.09450 |