Abstract

In the solution of the “transformation problem”, Marx erred in believing that
the profit rate determined in the value system was the mediation between values and production
prices. This error invalidates Marx’s “doble postulate”, according to which the sum
of values equals the sum of prices and the sum of surplus value equals the sum of profits. By
using a linear operator from the value system, it is possible to fully determine the average
profit rate and the system of production prices. ln this way, we can preserve Marx’s fundamental
epistemological postulate, according to which the realm of essence (values) determines
the realm of transparent reality (prices).

JEL Classification: D46; B51.