The Labor Theory of Value and Fixed Capital

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Abstract
A new approach to the relationship between the labor theory of value and fixed capital is presented. It is argued that fixed capital is not a joint product. Hence value should be imputed to it differently than to the produced commodities. A mathematical model is developed in which labor values can be imputed clearly and consistently to the commodities, even in the presence of fixed capital. This procedure is compared to Steedman's and Morishima's approaches and is seen to avoid the problems they incur. Thus it is concluded that fixed capital can be examined by means of the labor theory of value and that the Sraffa-von Neumann treatment of fixed capital should be abandoned.