ABSTRACT
Ian Steedman, perhaps the most vociferous Neo-Ricardian, presents a model of value based on a physical quantities approach. He first demonstrates that the transformation of values into prices using Marxist imputed values based on embodied labor does not bring about the required results. Steedman then argues it is only in dropping the labor theory of value that one can achieve a result where value is proportionate to price. For Steedman, this result implies that Marx's theories are incorrect. He specifically addresses the impact on Marx's theory of the falling rate of profit and the labor theory of value.
