classical labor theory of value

E1002039

The classical labor theory of value is an economic doctrine, developed by thinkers like Adam Smith and David Ricardo, which holds that the value of a commodity is fundamentally determined by the amount of labor required to produce it.

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classical labor theory of value canonical 1

Statements (48)

Predicate Object
instanceOf doctrine in classical economics
economic theory
theory of value
appliesTo reproducible commodities
associatedWith classical economics
political economy
assumes commodities produced for exchange
competitive markets in the long run
basisFor Marxian theory of exploitation
labor theory of surplus value in Marxism
contrastedWith marginal utility theory of value
subjective theory of value
coreClaim labor is the source of economic value
the value of a commodity is determined by the labor required to produce it
criticizedBy neoclassical economists
criticizedFor difficulty explaining prices of non-reproducible goods
neglecting marginal utility
problems with heterogeneous labor measurement
developedBy Adam Smith NERFINISHED
David Ricardo NERFINISHED
Karl Marx NERFINISHED
classical economists
downplays subjective preferences of consumers
emphasizes cost of production
labor time required for production
field economics
focusesOn production side of the economy
goal explain long-run relative prices of commodities
historicalRole foundation of classical political economy
precursor to neoclassical value theories
influenced Marxian economics NERFINISHED
labor theory of surplus value NERFINISHED
influencedBy labor as a measure of value in early political economy
keyConcept cost-of-production price
natural price
socially necessary labor time
language English
relatedConcept exchange value
profits
rent
surplus value
use value
wages
timePeriod 18th century
19th century
usedBy Adam Smith in explaining natural prices
David Ricardo in explaining relative prices
Karl Marx in explaining exploitation

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Marxian labor theory of value influencedBy classical labor theory of value