A Note on the So-Called Double Counting' Problem in the Transformation Procedure

Abstract

The purpose of this paper is to clarify the problem of double counting of the profit contained in the elements of constant capital. This problem is getting more and more important because most recent vindicators of the labor theory of value maintain that the value of constant inputs should be defined as the price at which they were purchased. I will show that the value definition newly adopted does not hold without unreal assumptions which have already been explored in the value debate in 1970s.