Joint production and labour values

Abstract

This paper investigates the problem of labour value determination in the presence of joint production. The purpose is to clarify the main problems involved, and critically review some recent proposals. In the case of joint production the inputs can not be divided between products in a natural way. As a result, none of the three alternative definitions given by Marx for labour values can generally be applied in this case. This means that the definition of labour values has to be generalized. The author points out that any such generalization will contradict some original Marxian proposals; therefore, there is no Marxian solution to the problem. One could still attempt to find a generalization Marxian enough in its spirit. The author lists some criteria that such a generalization could be tested against. He points out that the solution suggested by Morishima fails to meet most of the above criteria. It will be argued that a solution which relies on a price dependent division of inputs between products is closer to the general spirit of Marxian analysis.