Abstract
This paper re-examines the so-called transformation problem through Josef Winternitz’s 1948 seminal contribution. Instead of the three-department model of Winternitz’s solution, a two-department model for both simple and expanded reproduction is applied. Although Winternitz’s solution in both cases is verified, a new complementary treatment concerning the consumption of capitalists is needed. In both cases, a theoretical option emerges: the infinite (but proportional) solutions, related to the value of the currency and its changes.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have