Ok, the first line should end with 400 bu. wheat, the second line with
20 tons iron, and in the third line the 400 should line up under the 280
and 120 and the 20 should line up under the 12 and 8. sorry.

-----Original Message-----
From: [EMAIL PROTECTED]
[mailto:[EMAIL PROTECTED] On Behalf Of Forstater, Mathew
Sent: Tuesday, March 11, 2008 10:29 AM
To: Progressive Economics
Subject: RE: [Pen-l] Re: GMUonomics [was: behavioral (experimental)
economics]

Probably the best demonstration that economic value is objective is
Sraffa (1960).

The simplest model is a two-commodity world of simple reproduction:

280 bu. wheat + 12 tons iron = 400 bu. wheat
120 bu. wheat + 8 tons iron  = 20 tons iron
--------------------------------------------
400                 20

The exchange values of wheat and iron are determined without any
reference to utility, marginalism, or any subjective aspects.  Sraffa
goes on to generalize this for a surplus producing system, with wages
and profits, etc.

Piero Sraffa, 1960, Production of Commodities by Means of Commodities,
Cambridge University Press.

David B. Shemano wrote:
> I am truly curious -- do you (and others on this list) really, really,
reject that value is subjective?  It is so self-evidently true to me
that it is hard for me to even conceptualize the opposite.  I understand
the labor theory of value as polemic, but as philosophically correct, I
don't get it.


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