Labor theory of value

The labor theory of value (LTV) is a theory in economics and political economy concerning a market-oriented or commodity-producing society: the theory equates the "value" of an exchangeable good or service (i.e., a commodity) with the amount of labor required to produce it.

Related Topics:
Economics - Political economy - Commodity

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The dominant view sees this as a theory of price determination in competitive markets, a substitute for the neoclassical theory of price determination. But to others, it is a tool for understanding the social relations of production, more of a historical and institutional theory than a price theory.

Related Topics:
Neoclassical - Institutional

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Adam Smith, David Ricardo, and Karl Marx are most often associated with this theory. However, the theory is older, going back to John Locke.

Related Topics:
Adam Smith - David Ricardo - Karl Marx

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