There is no way that the labor theory of value can calculate the value of the computer that is being transferred to the final product -- LBO -- unless you know in advance exactly how long the computer will be kept in operation.
Yes, if you know that a new computer that costs $1000 will last 10 years, you can work out a scheme whereby the computer transfers a given amount of value each year to the final product. Without that prior knowledge, such calculations are groundless.
In other words, the algebraic labor theory of value requires some sort of technological rational expectations.
Marx's was far more sophisticated than the treatment usually described as the labor theory of value. He discussed the sudden and unexpected destruction of value, which upsets simple calculations.
I have written about Marx's theory of value in few places, but the prevailing view still seems to be that you should merely add up c+v+s
and call that the theory of value. None of these treatments give an adequate explanation of how you calculate the c in the equation.
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Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901