The Marxian equations of reproduction and modern economics *
Before we start dealing with the proper subject of this paper we shall
modify somewhat the Marxian division of economy into departments in
order to simplify our argument and in order to focus on the basic problem
of the reproduction schemes.
First, instead of including producer goods in Department 1, we will ,
assume that it covers the total value of gross investment inclusive of
the respective raw materials. Thus this department represents the integrated
production of all final non-consumer products. (We disregard
in our argument as does Marx ー when he deals with reproduction schemes
ー both foreign trade and government revenue and expenditure.)
Second, we treat likewise the consumer goods, i.e., we include in the
department which covers their output the production of respective raw
materials from top to bottom. Moreover, fully in the Marxian spirit,
we distinguish the following two departments : Department 2 producing
consumer goods for capitalists and Department 3 producing wage goods.
We obtain thus the following " tableau économique" of the national ‘
income where Pi, P2, P3 are gross profits (before deduction of depreciation)
in the respective departments, WI, W2, W3 ー the respective wages; P and
W aggregate profits and wages, and finally I ー gross investment, C k ー capi-
talists’ consumption, Cw ー workers’ consumption and Y ー gross national
income (before deduction of depreciation).
* This article was presented as a background paper for the Symposium on the
influence of Karl Marx on contemporary scientific thought, Paris, May 8-10, 1968,
organized under the auspices of Unesco by the International Social Science Council
and the International Council for Philosophy and Humanistic Studies.