Paper
Feasible Set and the Transformation of Values
Authors
Jiyuan Lyu
Abstract
This paper proposes a shift in perspective on two long-standing problems in political economy: the reduction of complex labor and the transformation problem. Rather than searching for a unique constant solution, we reframe both problems as characterizing the space of feasible distributions under the constraints imposed by the objective physical-production network. We build an input--output model that includes fixed-capital stocks and prove mathematically that, as long as the macroeconomy generates a physical surplus, all reduction ratios that can sustain the subsistence floor of the labor force form a bounded value feasible set. Within this multi-dimensional space, the classical two macro-aggregates equalities can be satisfied simultaneously for a well-defined range of profit rates, so that the Law of Labor Value and the nominal price system are logically consistent without violating the physical reproduction floor. We validate the theoretical framework with an empirical test based on China's 199-sector input-output network for 2023.
Metadata
Related papers
Cosmic Shear in Effective Field Theory at Two-Loop Order: Revisiting $S_8$ in Dark Energy Survey Data
Shi-Fan Chen, Joseph DeRose, Mikhail M. Ivanov, Oliver H. E. Philcox • 2026-03-30
Stop Probing, Start Coding: Why Linear Probes and Sparse Autoencoders Fail at Compositional Generalisation
Vitória Barin Pacela, Shruti Joshi, Isabela Camacho, Simon Lacoste-Julien, Da... • 2026-03-30
SNID-SAGE: A Modern Framework for Interactive Supernova Classification and Spectral Analysis
Fiorenzo Stoppa, Stephen J. Smartt • 2026-03-30
Acoustic-to-articulatory Inversion of the Complete Vocal Tract from RT-MRI with Various Audio Embeddings and Dataset Sizes
Sofiane Azzouz, Pierre-André Vuissoz, Yves Laprie • 2026-03-30
Rotating black hole shadows in metric-affine bumblebee gravity
Jose R. Nascimento, Ana R. M. Oliveira, Albert Yu. Petrov, Paulo J. Porfírio,... • 2026-03-30
Raw Data (Debug)
{
"raw_xml": "<entry>\n <id>http://arxiv.org/abs/2603.09450v1</id>\n <title>Feasible Set and the Transformation of Values</title>\n <updated>2026-03-10T10:03:08Z</updated>\n <link href='https://arxiv.org/abs/2603.09450v1' rel='alternate' type='text/html'/>\n <link href='https://arxiv.org/pdf/2603.09450v1' rel='related' title='pdf' type='application/pdf'/>\n <summary>This paper proposes a shift in perspective on two long-standing problems in political economy: the reduction of complex labor and the transformation problem. Rather than searching for a unique constant solution, we reframe both problems as characterizing the space of feasible distributions under the constraints imposed by the objective physical-production network. We build an input--output model that includes fixed-capital stocks and prove mathematically that, as long as the macroeconomy generates a physical surplus, all reduction ratios that can sustain the subsistence floor of the labor force form a bounded value feasible set. Within this multi-dimensional space, the classical two macro-aggregates equalities can be satisfied simultaneously for a well-defined range of profit rates, so that the Law of Labor Value and the nominal price system are logically consistent without violating the physical reproduction floor. We validate the theoretical framework with an empirical test based on China's 199-sector input-output network for 2023.</summary>\n <category scheme='http://arxiv.org/schemas/atom' term='econ.TH'/>\n <published>2026-03-10T10:03:08Z</published>\n <arxiv:primary_category term='econ.TH'/>\n <author>\n <name>Jiyuan Lyu</name>\n </author>\n </entry>"
}