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2 unusual facts about Criticisms of the labour theory of value


Criticisms of the labour theory of value

Neoclassical economics also follows this lead  — and that of Jevons, Menger, and Walras — from the 1870s and discards the LTV in favour of general equilibrium theory, which determines prices based on the interaction of preferences, technology and endowments through supply and demand.

A close reading of Jevons' chapter on "labor" in his "Theory of Political Economy" reveals that he considered his marginal analysis quite consistent with the labor theory of value as he established that in equilibrium marginal utility equals marginal labor value.



see also