Deciphering the Drivers of Price-Labor Value Vector Proximity in Empirical Studies

Deciphering the Drivers of Price-Labor Value Vector Proximity in Empirical Studies
Moraitis, Thanos and Deepankar, Basu. (2026). University of Massachusetts Amherst Working Papers. 18 May. pp. 1-35. (Article - Working Paper; English).

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Alternative Locations

https://scholarworks.umass.edu/entities/publication/04ce05ec-7eac-4fff-bb76-7a4fbd51f1c0

Abstract or Brief Description

In the tradition of Classical Political Economy, empirical studies of labor values and prices ask whether labor-value vectors are close to observed market-price vectors. This paper examines the mechanisms that generate such proximity in input-output systems by uncovering the structural features of the linear production system determining the relevant distance. We use the recent critique of Shaikh-style price-value comparisons by Sabatino (2026) as a springboard for this analysis, by deciphering the results she obtains from different artificial datasets. The central result is that, under the direct-price construction examined here, the distance is governed by the dispersion of reciprocal vertically integrated labor coefficients. This shifts attention to the determinants of the vector of vertically integrated labor coefficients: the dispersion of the direct labor vector, the column structure of the Leontief inverse, and the spectral radius of the input-output matrix. The analysis shows that low market price-labor value distance can arise from identifiable structural mechanisms within the production system.

Language

English

Publication Type

Article - Working Paper

Commentary on

Humbug Labor Values
Sabatino, Isabella K. (2026). Review of Capital as Power. Vol. 2. No. 3. March. pp. 1-52. (Article - Journal; English).

Keywords

Anwar Shaikh imputation input-output Isabella Sabatino labour theory of value national accounting price

Subject

BN Labour
BN Methodology
BN Production
BN Value & Price
BN Capital & Accumulation

Depositing User

Jonathan Nitzan

Date Deposited

18 Jun 2026 19:12

Last Modified

18 Jun 2026 19:12

URL:

https://bnarchives.net/id/eprint/892

Commentary/Response Threads

• Sabatino, Isabella K Humbug Labor Values. (deposited 11 Mar 2026 22:26)
  • Moraitis, Thanos and Deepankar, Basu Deciphering the Drivers of Price-Labor Value Vector Proximity in Empirical Studies. (deposited 18 Jun 2026 19:12) [Currently Displayed]

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