Marx and Sraffa on the theory of value

The essential aim is to reconstruct the original Marxian theory of value within the tradition of the classical “surplus” approach and to contrast this distinctive and unique Marxian critique of the classical tradition with the critiques of the modern Sraffian and neo-Ricardian value formulations. Engaging in some of the perennial controversies over the ostensible “transformation problem”, it will be argued that Marx’s original theory of value represents a radical break from the classical labour theory of value developed by Smith and Ricardo. In this sense, Ricardo’s seminal “embodied labour” theory of value constitutes the critical historical antecedent in the recent revival of the Sraffa/Marx value controversies. The Sraffian rehabilitation of the Ricardian system, however, also inherits some of the original Ricardian fallacies and confusion over the categories of usevalue/ exchange-value, concrete/abstract labour, surplus value/profit, etc. In other words, it is impossible to reconcile the Marxian and Sraffian value formulations from an epistemological standpoint. Despite these irreconcilable theoretical problems, there are still some promising analytical lines of inquiry between the Marxian and Sraffian value/price systems.