Feasible Sets and the Transformation of Values
Abstract
This paper proposes a change in perspective on the ``transformation of values'' problem: from ``searching for a single constant solution'' to ``characterizing the allocation space under objective constraints imposed by the physical production network.'' Building an input--output model, we show mathematically that whenever the macroeconomy features a physical surplus, the set of skilled-to-simple labor reduction vectors that can sustain the subsistence floor of the entire labor force forms a bounded value-feasible set . Within this multidimensional region, the classical ``two great macro equalities'' necessarily hold simultaneously for a reasonable range of profit rates. Hence, without violating the physical minimum conditions for reproduction, the law of value and the nominal price system can be made logically consistent.
Cite
@article{arxiv.2603.09450,
title = {Feasible Sets and the Transformation of Values},
author = {Jiyuan Lyu},
journal= {arXiv preprint arXiv:2603.09450},
year = {2026}
}