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Bibliographic Details
Main Author: Lyu, Jiyuan
Format: Preprint
Published: 2026
Subjects:
Online Access:https://arxiv.org/abs/2603.09450
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Table of 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.