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A Mathematical Note on Marxian Theorems

Author(s): Nobuo Okisio

Source: Weltwirtschaftliches Archiv, Bd. 91 (1963), pp. 287-299
Published by: Springer
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' MathematicalNote on


Contents: I. Assumptions and Notations.- II. Value: Productivity

of Labor. - III. ExchangeValue: Reference
Price. - IV. SurplusValue:
Determinant of Employment.- V. Profitand Real Wages. - VI. Trans-

fundamental theoremsin MarxianEconomicsare based on two

factors; (i) thetechnologicalfactorand (2) the social factor.The
mainsocial factorin the capitalisticworldis the conflicting
betweenthecapitalistand theworkingclass. In thispaperwe reformulate
someMarxiantheoremsin mathematicalterms,hopingtherebyto clarify
Marxian doctrinesfor those who are confusedby the rather obscure
expressionof Marx.

I. Assumptions and Notations

In orderto revealthe centralidea as clearlyas possible,we set up the
following assumptions.
(i)We disregardclasses otherthan capitalistand workingclass, so
that incomecategoriesotherthanwagesand profitmay be ignored.
(2) Labor is takento be homogeneous, so wagedifferentials
(3) Laborers spend all theirwage income forconsumption with a fixed
(4) The velocityof circulationof capital is the same regardlessof
(5) Constantreturnsto scale and no joint-product.
These assumptionsdo not necessarilylimitthe validityof Marxian
theorems. The resultsobtainedon thebasis oftheseassumptionsare easily
For mathematicalformulation we specifyour notationsas follows:
a^' the amount of /th commodity necessaryto producea unitofith
Remark:The workputtingthispaperinto Englishwas supportedby theFordFoundation
as part of a projectpromotingtranslationof Japaneseeconomicarticles.

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288 Nobuo Okisio

t¿: the amountof labordirectly neededto producea unitofith

fa the totalamountof labornecessary to producea unitof ith
commodity,e., t¿plus the labornecessary produce(aiv . . . , ain)
pi', theprice ofa unit ofithcommodity.
w: themoneywagerate.
T: thenumber ofworking hoursperday.
. . .
( Blt B2> , Bw) : the basket of consumptiongoodsreceivedby a
r: thenormalrateofprofit.

of Labor
II. Value: Productivity
One centralnotionin Marxianeconomics is theconceptof'Values/'
The value of a commodity is measuredby the totalamountof labor
necessary to producea unitof the commodity withstandardmethods
ina society.
Whatequations determine thevalueofa commodity ? And on
whatfactorsdoes the value of a commodity depend?
Thevalueoftheithcommodity ist4inournotation. Andifthestandard
production methodin theithindustry is givenas (ailt. . ., ain>t¿),then
thevaluesofthecommodities aredetermined bythefollowing equations1:
* = SO0*y+ T< (♦ = 1,2, ...,n) (I).
Thusthevalueof a commodity dependsnotonlyon thestandardpro-
ductionmethodin thegivenindustry but thosein theindustries whose
products directly or indirectly
necessary the
to produce commodity.
Equations(i) have an economically meaningful > 0), ifand
only if the matrix
IE - A). A^fai) (2)
satisfiesthe well-known Simon-Hawkins' conditions2. The required
conditions mean that societycan obtainpositivenet outputsusing
standardproduction methods.These conditions mustbe satisfied, if
production is to be meaningful.We assumetheseconditions throughout
SomecriticsarguethatMarxfailedto takeaccountoftheheterogene-
ous characterof laborin determining the valuesof commodities8. To
1 These equationsare identicalwith KennethMay's equations (5') in his article"The
StructureofClassicalValue Theories",TheReviewofEconomicStudies,Vol. XVII, Cambridge,
England,1949- 1950,p. 63.
■Gerard Debreu and J. I. Herstein,"NonnegativeSquare Matrices",Econometrica,
Vol. XXI, Chicago,111.,1953,pp. 597 sqq.
3 The idea developedbelow is foundedin: Rudolf Hilferding, "Böhm-BawerksMarx-
Kritik",in: Marx-Studien, Blätterzur Theorieund Politikdes wissenschaftlichen
hrsg.von Max Adlerund RudolfHilferding, Bd. I, Wien, 1904.

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A MathematicalNote on MarxianTheorems 289

examinethispointwe mustdropassumption(2). In realitythereare many

kindsof labor. So the standardproductionmethodin the ith industry
is expressedas (ailf . . ., ain, xtl . . ., t^), whererikshows the amount
of the ¿th labor necessaryto producea unit of the ith commodity.Thus
equations (1) mustbe replacedby the followings:
^^•H2t^a (3)
wherehkis theconversionrate ofthe ¿th labor.If we choosethe 1stlabor
as standard,then
K - 1 (4).
Equations (3) and (4) are not sufficient to determine n
our + /unknowns,
t and h. We need more/- 1 equations.
In orderto produce skilled laborers,additionalinputs for training
are necessary.If normaladditionalinputs fortrainingthe ßth laborer
are (Hkv. . ., Hkn,Tkl, . . ., Tkl) and the normalamountof labor during
his lifeis Ak,then
A, hk= A, + S HkiU + S Tkj hf {k = 2, 3, . . . , n) (5).
The skilledlaboris overvaluedby the amountof the additionalinputsfor
training. Equations (3), (4) and (5) determine thevaluesofcommodities t
and the conversionratesh. Thereis no circularreasoningas manywriters
Thus defined,Marxian values of commoditiesare used to measure
the productivity of labor,movinginversely to changesin the productivity
of labor.

III. ExchangeValue: ReferencePrice

In the marketeverycommodity is exchangedforan other.Theexchange
ratiobetweenthe ith and the jth commodityis pi/pj,whichis not neces-
sarilyequal to tjij . Ifpjpj = tjlj, thentheexchangeis calledan equivalent
exchange. If by some reasons pj/pj> tjtj, then the exchange is not
equivalentand morelabor embodiedin the jth commodityis exchanged
withlesslaborin theithcommodity. froma socio-economic
It is interesting
pointof view to knowwhetherexchanges equivalentor not. For this
purpose,tijtjserves as a referenceprice.
The firstquestionto be answeredis under what conditionsare all
exchangesequivalent.If all exchangesare equivalent,then,
Pi = Mi (*= 1.2. ...,w) (6).
Substituting (6) into (1), we get
^^S^-^+Xt,. (7).
Equations (7) mean that value added per labor unit is exactlysame in

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2Ç0 Nobuo Okisio

all industries.But statisticalinformation tells us that value added per

labor unit is not equal in different industries.Thereforein reality,ex-
changes are not equivalent.The differentials in value added per labor
unitin variousindustries indicatethe existence of non-equivalent exchange.
It is usuallymaintainedthat thesedifferentials are due to differences
in productivity.But this is misleading.The physicalproductivityof
labor mustbe measuredby t{.Usuallythe physicalproductivity of labor
is measuredby t,-.Such a measuregenerallyoverestimates theincreasein
the productivityof labor. Because sometimesthe decreasein t¿ is ac-
companiedby the increasein a^. The comparisonofphysicalproductivity
in different industriesis very awkward.For example, in agriculture,
a quartersof wheat is producedby one unit of labor and in the steel
industryß tons of steel by one unit of labor. How can we comparethe
physical productivityin the two industries?One possible way is by
analysingthe productionprocess in both industrieson an engineering
basis and calculatingthe hypotheticaltiyassumingthat in agriculture
wheatis producedby a productionmethodofthesamelevelofmoderniza-
tionas thesteelindustry. Andwe comparethehypothetical tin agriculture
thus obtained with t in steel. Those in economicresearchdo not take
such troubleand proceedto the comparisonof value productivity. But
the so-calledvalue productivitydependson the constellation of prices.
Accordingly, the comparisonis concernednot withphysicalproductivity
but withthe priceconstellation.
The secondquestionthat arisesis how we can measurethe degreeof
non-equivalency of exchangewiththe available data. If we can calculate
ti and thenwe can easilymeasurethedegreeofnon-equivalency
pi directly,
ofexchange.But in orderto gettitwe needphysicalproductioncoefficients
for all industries,and these are not statisticallyavailable. We must
proceedwithoutdirectmeasurements of the values of commodities.
The degreeof non-equivalencyof exchangemeasuresthe difference
between pjpj and tjij as shown above. Alternativelywe may define
the degreeof non-equivalencyas the difference between tjpi and tj¡p¡.
That is, tilpiindicatesthe total amountof labor necessaryto producea
dollar's worthof the ¿th commodity.Thus it is unnecessaryto measure
ti directlyin orderto derivethe degreeof non-equivalency.
Modifying equations(1), we get
h s s «db. h + 5 (8).
Pi Pi Pi p^
In order to obtain t{'piythe necessarydata are monetaryproduction
The Leontiefinput-output
a^p^pi and Tt-/&.
coefficients table givesus the
monetaryproduction for
coefficients all thoughin aggregative

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A MathematicalNote on MarxianTheorems 29 1

form.We can easily calculatetjpi fromthese data. And comparingthe

tifa in differentindustries,it is possible to know the degree of non-
equivalency.W. D. Evans calculated tjpi in different industriesand
interpreted themas indexesof labor productivity. But as shownabove
index of labor productivityis t{ or 'jtitand the difference
of tjpf rep-
resentsnon-equivalencyof exchange1.
As shownabove, "value*' in the Marxiansense is not metaphysical
as is oftenclaimedbut an observableand operationalmagnitude.

IV. SurplusValue: Determinant

of Employment
If a representative
laborerworksforT hoursa day and receivesthe
consumption -goodsbasket (Blt . . . , Bn) in exchangeforhis wage, the
amount of necessarylabor to producethe basket is S B{ t{ and surplus
emergesonlyif T exceeds S B{ timThe amountof surpluslabor per day
is T - S B{ tfand the rate of surplusvalue is
* = (r-s¿U)^s¿U- (9).
The rate ofsurplusvalue dependson threefactors:(1) thelengthofwork-
day Tt(2) the laborer'sconsumption basket (Blt . . . , Bn) and (3) produc-
tivityof labor ¿¿.The rate of surplusvalue is increasedin threeways:
(i)lengthening the work-day, (2) impoverishinglaborersand (3) improving
the productivity of labor. As the expression(9) reveals,the productivity
oflaborwhichinfluences therateofsurplusvalue is onlytheproductivity
in theindustries whoseproductsare includedin thelaborer'sconsumption
basket; B{ > 0 (wage-goods).The productivity oflaborin thewage-goods
industry,however, equations (1) show, depends on the productivity
of labor in the industrieswhoseproductsare inputdirectlyor indirectly
in the productionof wage-goods.
The expression(9) is rewrittenas
e = (l-Xbiti)^Xbiti (10),
whereb{ = BJT and (blt b2, . . ., bn) representsthe rate of real wages
per unitof labor. The rate of surplusvalue dependson (1) the rate of real
wagesand (2) the productivity oflaborin the wage-goodsindustries.
Let the aggregateamountof employmentbe N, then the aggregate
amountofsurpluslaboris (1 - 2 o¿t¿)N. In physicaltermssurpluslabor
takes the formof surplusproduct(ylf. . ., yn).If the amountof product
1 W. Duane Evans, "Indexes ofLabor Productivity as a PartialMeasureofTechnological
Change", in: Input-OutputRelations,Proceedingsof a Conferenceon Inter-Industrial
Relations Held at Driebergen,Holland, Ed. by The NetherlandsEconomic Institute,
Leiden,1953,pp. 33 sqq. ti ¡pi is the same as "the total employment coefficient"
by W. W. Leontief.WassilyW. Leontief,TheStructure ofAmericanEconomy, 1919-1939, An
EmpiricalApplicationofEquilibriumAnalysis,2nd Ed., New York, 1951, pp. 159 sq.
ArchivBd. XCI.
Weltwirtschaftliches 19

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292 Nobuo Okisio

in each industryis (xlf . . ., xn),thensurplusproductsare determined

the foliowings:
Xj = 2 ciij xi + bjN + uy
N = Z,xixi (/= 1,2, ...,») ^
Fromequations(1) and (11) we get
(1 - S &,.*,) iV = S o^i (12).
This equationmeansthat the aggregateamountof surpluslabor is equal
to the aggregateamount of labor directlyand indirectlynecessaryto
producethe surplusproducts.Moreoverequation(12) shows"the employ-
ment multiplier"in Marxian form.If we interpret(11) as indicating
equilibriumconditionsratherthanas a definition ofsurplusproduct,then
(12) determinesthe equilibriumlevel of employment as a functionof(1)
rate of real wages (blf . . . , bn)(2) productivityof labor (tlf. . . , tn)and
(3) the capitalists1demandforsurplusproducts(ui, . . . , uw).Equation(12)
tells us, for example, how the increase of productivityinfluencesthe
employment level. If the rate of real wages and capitalists'demandare
kept unchanged,then the technicalimprovementin the ith. industry
(decreasein t4)lowersthe employment level by

»-itìw'" ('S-
In the same way, we are able to calculateeasilythe effectsof the above
three factorson the employmentlevel. In Marxian terminology these
effectscan be explainedas follows:(1) The independentrise in the rate
ofreal wages decreasesthe rateofexploitationand in thiscase capitalists'
demand forsurpluslabor (= 2 u¿¿¿)is constant,so in orderto exploit
this constant amount of surplus labor capitalistsmust employ more
labor. («2)The independentimprovement in productivity increasestherate
ofexploitationso faras theimprovement directlyorindirectly concernsthe
wage-goodsindustries. Andiftheimprovement takesplacein theindustries
whoseoutputsaredemandedby capitalists,thenthisdecreasesthedemand
forsurpluslabor,thus reducingthe employment level. (3) The independ-
ent increase of capitalists'demand for surplusproductsincreasesthe
capitalists'demand forsurpluslabor and keeps the rate of exploitation
unchanged,so that the capitalistsmust employmorelabor.

V. Profitand Real Wages

The centralMarxian propositionabout profitis that the necessary
conditionforthe existenceof positiveprofitsis the exploitationofsurplus
labor,namelythe positivenessof the rate of surplusvalue. This is easily
provedas follows:

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A MathematicalNote on MarxianTheorems 293

In orderforprofitto existin everyindustrythe following

musthave a solution,(plt . . . , pn,w)
Pi > S a{j pj + TU»(¿=1,2,..., n) (14).
w ^ S bipi w,pi > 0
The Simon-Hawkins'1 conditionsrequirethat the necessaryand sufficient
conditionsforthe solutionof (14) are that all principalminorsof any
orderof the determinant
'E-A -x
-b 1 (X5).
t = /M and b = (K --K)

are all positive.Of coursethese conditionsimplySimon-Hawkins'condi-

tionson the matrix(2), so, as shownin Chapter2, (tlt. . . ,tn)are positive.
Economicallythisis obvious,becausein orderto yieldprofits, theproduc-
tion methodsmust not be so as
inferior not to produce net products.
Using equations (1), we knowthat

EZt ~l =(l-*biti)'E-A' (l6).

Thus Simon-Hawkins'conditionson (15) convertto the conditionsthat
1 - s^ ti > 0 and ¿¿> 0, whichsignifythe positivenessof the rate of
A positiverate of exploitationis merelya necessaryconditionforthe
existenceof positiveprofit.Because the positivenessof the rate of ex-
ploitationonly assures the productionof surplus,it does not implyits
conversioninto monetaryform.For this, the existenceof sufficient
demand is required.A positive rate of exploitationis the necessary
conditionon the productionside. Additionalconditionson the market
side are needed; specifically,a sufficientdemand on the part of the
capitalistsforthe surplusproduct.
Marx, in commonwith Ricardo, states that the rate of profitis a
decreasingfunctionof the rate of real wages if productivityremains
constant.This theoremis proved as follows:
The rate of normalprofitis determined by the equations
Pi = (!+') (s**;Pi + T<w) (*7)'
w = S bipi
1 David Hawkins and HerbertA.Simon, "Note: Some Conditionsof Macroeconomic
Vol. XVII, 1949,P- 245-

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294 Nobuo Okisio

wherethematrix (A t' /jg'

'b o)
is indecomposable.By Frobenius'theorem1concerningpositivematrix,
equations (17) uniquely determinethe rate of normal profitand the
positiverelative-ratios betweenprices and moneywage rate. Equations
(17) determines only the relativeratios betweenprices and wage rate.
To determinethe absolutelevel,we need moreone equationwhichgives
numeraire's"price." For example,px = const.And if the rate of surplus
value is positive,then the rate of normalprofitis positive.Thus the
rate of normalprofitdependson two factors;(i)the technicalcoefficients
in the industrieswhoseproductsare directlyor indirectly concernedwith
wage-goodsand (2) the rate ofreal wages.The technicalcoefficients in the
industrieswhose productsare not necessaryto producewage-goodsin
any way, say luxuarygoods,do not affectthe rate of normalprofit.This
propositionis foundedby Ricardo, but Marx could not appreciateit.
Bortkiewicz2 reformulated this in his excellentarticle: "Wertrechnung
und Preisrechnung im MarxschenSystem." His argument is summarised
by P. M. Sweezy3.Mathematically this is implied in the assumption
that the matrix(18) is indecomposable.
The question to be answeredhere is how the rate of normalprofit
depends on the rate of real wages. First we must definewhat we mean
by the increasein the rate of real wages,whichis not sealerbut vector.
Suppose the rate of real wages changesfrom(bv . . . , bn)to (i/, . . . , bn')
E bipi < S V pi tifV ^ 0 (19),
where(plt . . ., pn) is the solutionof (17). Then, we say that the rate of
real wages increases.
For conveniencewe rewrite(17) as
ßft=Sal7^ + Tí (20),

where ß = 1/(1+ r) > 0 and pjw = q{ > 0. If the rate of real wages
rises in responseto the relation(19), then the new rate of profitr' and
new price-wageratios {qxf, . . . , qn') must satisfythe equations
ß' q/ = S a{i q/ + T< (21),

1 G. Frobenius,"Über Matrizenaus positivenElementen'*, Sitzungsberichtederköniglich

preußischenAkademieder Wissenschaft en, Berlin, 1908, pp. 471 sqq.; 1909, pp. 514 sqq.
1 L. von Bortkiewicz, "Wertrechnung und Preisrechnungim MarxschenSystem",Archiv
fürSozialwissenschaftund Sozialpolitik,Bd. XXIII, Tübingen,1906,pp. 1 sqq.; Bd. XXV,
1907,pp. 10 sqq., 448 sqq.
8 Paul M. Sweezy,The TheoryofCapitalistDevelopment, PrinciplesofMarxianPolitical
Economy,New York, 1942.

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A MathematicalNote on MarxianTheorems 2Ç5

whereß' = 1/(1+ r'). From (20) and (21), we get

P (ft' - ft) = S «„• (ft' - ft) + ft' (P - P') (22)
0 = S 6/ (ft' - ft) + S (b'i - b{) q{ (23).
As we knowthat the matrix
(fiE -A) (24)
satisfiesSimon-Hawkins'conditions1and q/ > 0, we may say from(22)
that (q/ - q%)~ 0 forall i accordingto (p - ß') = 0.
Whilethe relation(19) informsus S (&/- &,•)q{ > 0, hence, we must
concludefrom(23) that ß < p' or r > r'. (Q. E. D.)
Some economiststrainedin the moderneconomicsmay argue that
the risein the rate of real wages inducescapitaliststo substituteproduc-
tion methods,so that it is not sufficient to calculatethe effectofisolated
changesin the rate of real wages. It is truethat in thelong run,the rate
of real wages affectsthe capitalists'choice in productionmethods.Can
we stillprovethe inverserelationbetweenthe rate of profitand the rate
of real wages consideringthese inducedtechnicalchanges? The answer
is yes. Insofaras no innovationoccurs,the rise in the rate of real wages
lowersthe rate of normalprofit.The inducedtechnicalchangescan do
no morethan mitigatethe decreasein the rate of profit.These theorems
can be provedas follows2.
Supposetherateofrealwageschangesfrom(bv . . . , bn)to (b' . . . , b'n)
following relation(19) and capitalistsin all industriessubstitute(ailt . . . ,
ain,t¿)for (a'ilt . . . ,a'inyt/) forall i, thenthenewrate ofnormalprofitr*
and new price-wageratios (q*lf ..., q*n) must satisfythe equations

?•?«♦= S *'„•?,♦+< (25)

whereß* = l/(l+r*). If no innovationoccursin any industryand al*

capitalistsbehave rationally,thenthe old technique(ailt . . . , ainft¿) and
the new technique(a/lt . . . , a/nt/) must satisfythe followingrelations
S Oifq, + t, < S a/j qi + V (26)
S a{i q* + <■ < S a{j q* + t, (27).
1 The matrix(24) satisfiesSimon-Hawkins'conditions,because in (20) ß > 0, a%j ^ 0,
Tj 0 and qi > 0.
* If innovationoccursand the rate of real wages remainsunchanged,then the rate of
normalprofitnecessarilyrises. This is proved by our followingproof:r* > r' This was
shownbrieflyby Samuelson.Paul A. Samuelson,"Wages and Interest:A ModernDissection
of Marxian Economic Models", The AmericanEconomicReview,Vol. XLVII, Menasha,
Wise, 1957,PP- 892 sqq.

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296 Nobuo Okisio

(26) showsthattheold techniqueis superiorto thenewone withrespectto

the old price-wagesituation.And (27) showsthat the new one is superior
to the old one withrespectto the new situation.
Now we mustprover > r* > rr,or ß < ß* < ß'. Firstwe shallprove
ß < ß*. From (20), (25) and (26), we get
ß* (ft*- ft) > S a/i (?*y- qi) + ft(ß - ß*) (28)
0 = S V (ft*- ft) + S (b/ bi)ft (29).
Since we knowthat the matrix
(I* E -A1) A' ^(a/i) (30)
satisfiesSimon-Hawkins* conditionsand ft > 0, we can say from(28)
that (ft*- ft) > 0 forall i, if(ß - ß*) ^ 0. While by the relation(19)
the equation (29) rejects (ft*- ft) > 0 for all i, hence, we conclude
ß - ß* < 0.
Next we shall prove ß* < ß'. From (21), (25) and (27), we get

ß' (ft'- ft*) > S a{j (q{ - ft*) + ft*(ß* - ß') (31)
o = sv (ft'- ft*) (32).
Since we knowthat the matrix
WE - A) (33)
satisfiesSimon-Hawkins1 conditionsand ft* > 0, we may say from(31)
that (ft'- ft*) > 0 forall i, if (ß* - ß') ^ 0. But (32) rejects(ft'- ft*)> 0
forall i. Hence we concludeß* < ß'. (Q. E. D.)

VI. Transformation
In the Marxian systemthe concepts and propositionsin termsof
prices are based on value. The aim of such an approachis to revealthe
social implicationsof economicphenomena.But it is difficult to relate
quantitativelythese two worlds. This is the so-called transformation
problemin a widersense. In this last sectionwe shall presentcertain
quantitativerelationshipsbetweenthe priceworldand the value world.
(1) If the rate of surplusvalue is positive,then the rate of normal
profitis not greaterthan the rate of surplusvalue, 0 < r ^ e. This was
proved by Marx by the simple relation; -V ^ V+ C
, where equality
sign drops if c > 0. But a furtherproofis needed,because aftertrans-
formationto productionpricethe rate of normalprofitis not necessarily
equal to m'(v + c), whereof coursem,v, c are measuredin value term,
not priceterm.

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A MathematicalNote on MarxianTheorems 20/7

Proof:The rateofsurplusvalue e definedin (io) satisfiestheequations

ft= 2 «<,-?/+ (1 +«)*, (34).
1 = S bift
Whereasthe rate of normalprofitr satisfiesthe equations
ft= (1 + r) S afj ft + (I + r) t,
l=S*<ft (35).
From(34) and (35), we get

(ft- ft) = s «<> (ft- lì) - r s «</ft + (« - r) Ti (36)

0 = Si« (ft- ft) (37).
Since we knowthat the matrix
(E - A) (38)
satisfiesSimon-Hawkins'conditionsand rSai;« j^O and t{ are all
positive,we may say from(36) that (q{ - q4)< 0 forall i, ii e r < 0.
But (37) rejects (q4- q¡) < 0 forall i. Hence, we concludee ^ r, where
equality sign drops if S a^ > 0.
(2) If the rate of profitin every industryis positive,then pjw =
q{ ti. This means that laborersmust offermore labor in orderto get
a unitofthecommodity thantheamountoflabornecessaryto produceit.
In otherwords,the amountof labor whicha commoditycan command
in exchangeis greaterthantheamountoflaborrequiredin its production.
Proof: If the rate of profitin everyindustryis positive,then price-
wage situationmustsatisfy
9i > s«</?/ + T< (39)-
From (1) and (39), we get
(Vi- U) > S <ty(?/- '/) (4O).
Since we knowthat the matrix(38) satisfiesSimon-Hawkins'
we may conclude(q{- 14)> 0 forall i.
problemin a narrowsense is relatedto the
(3) The transformation
relationshipbetween"productionprice" and "value"1.
1 Mr. KennethMay, op. cit., p. 67, says: "If we can determinethe X's as functionsof
problem'."His argument,
thec's, v's, s's and a's, we willhave solvedthe 'transformation in
our notations,becomes that if we can determine"productionprice" as functionsof the
<HjtT» an(i bi,we W*Uhave solved the "transformation problem."But this is not the case.
The transformation problemis whetherwe can determine"productionprice" as functions
of "value": ¿'s, notaijtj and6¿ft-.Such a problemis impossibleto solve unlessthe organic
composition ofproductionin all industryare same. "Productionprice"is the pricesituation
determined by (17) or (20).

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298 Nobuo Okisio

conditionsforp^fa = tjtj forall i and /,

The necessaryand sufficient
wherefcjpjis determinedby (17) and the rate ofnormalprofitis positive,
tfa= *ifo (M = l,2, ...,n) (41),
tifarepresentsthe organiccompositionof productionin the ith industry
in termsof value. In Marxiansymbols,2 a^ tj = c{ and xt-2 b¿t¿= v4.
(i, j = 1, 2, . . ., n) meansthat cjvi = Cjlvj.
Hence tifa= t;/T?-
Proof:Firstwe shall showif q{ = X/t- forall i, thent{ = k^{ forall i.
= into
Substitutingq{ "kt¿ (20), we get
P X*,= X (E «,;./y+ T,J+ (1 - X)T, (42).
From equations (1), we know

^xlíV' (43)-
Since we assume that the rate of normalprofitis positive,X > 1, ß < 1,
and hence t4= krifk = (1 - X)/x(ß - 1) > 0.
Next we mustshow if ¿t- = k^ forall i, thenq{ = X¿¿forall i. From
(20) and (1), we get
ß (ft- y = L^ (?;-- ^ + (1 - ß) ^ (44)-
Substituting ^ = ÄTf-into (44), we get
- = s - - ß) h*t
ß (ft « «i/(?; ';) + d (45).
Comparing(45) with(20), we obtain
(ft-«/*(l-ß)=ft (46).
Thus we arriveat
ft= *,/O-U-ß)*} (47).
* * *

Zusammenfassung: Ein mathematischer Kommentarzu den Theoremen von

Marx. - Die grundlegenden Theoremeder ökonomischen Theorievon Karl Marx
gründensichaufzweiFaktoren,nämlichdemtechnischen und demsozialenFaktor.
Der wichtigste
sozialeFaktorin derkapitalistischen
Weltist derGegensatzzwischen
den Kapitalistenund der Arbeiterklasse.
In der vorliegendenAbhandlungwerden
einigeTheoremevon Marx in mathematischer Terminologieneu formuliert,
zwar in der Hoffnung,dadurchdie MarxschenLehrmeinungen denjenigenklarer
zu machen,die durchdie ziemlichunverständliche Ausdrucksweise von Marx ver-

Résumé: Explicationmathématique des théorèmesde Marx.- Les théorèmes

fondamentauxde la théorieéconomiquede Karl Marxse fondentsurdeuxfacteurs,

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Noteon Marxian
A Mathematical Theorems 299

le facteurtechniqueet le facteursocial. Le facteursocial le plus importantdans

le mondecapitalistec'est l'antagonismeentrecapitalisteset ouvriers.Dans l'étude
que voicicertainsdes théorèmes de Marxsontreformulés en termesmathématiques.
De cettefaçon,on espèrerendreplus clairesles doctrinesde Marx à ceux qui sont
déconcertés de Marx.
par la dictionassez inintelligible

Resumen: Un comentario matemáticode los teoremasde Marx.- Los teoremas

fundamentales de la teoríaeconómicade CarlosMarxestánbasadosen dos factores,
a saber en el factortécnicoy en el factorsocial. El factorsocial más importante
en el mundocapitalistaes el antagonismoentrelos capitalistasy la clase obrera.
En este artículoson reformulados unosteoremasde Marx en la terminología mate-
mática.El autoresperaque así pueda explicarmejorlas doctrinasde Marx a los
que son desorientados por su modo de expresiónbastanteincomprensible.

Riassunto: Un commentario matematicodei teoremidel Marx. - I teoremi

fondamentali della teoria economicade Carlo Marx si basano su due fattoricioè
sul fattoretecnicoe sul fattoresociale.Il fattoresocialepiù importantenel mondo
capitalisticoè l'antagonismofrai capitalistie la classe operaia.In quest'articolo
sono riformulati alcuniteoremidel Marx nella terminologia matematica.L'autore
sperachecosìpotràspiegaremegliole dottrine delMarxa quellichesonodisorientati
peril suo modod'esprimersi assai incomprensibile.

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