I do not support LTV in any way.
Whilst my theory is most easily tested on a simplified model economy, the principle would apply equally well to a real economy with real people.
Here, read this from MES: http://mises.org/rothbard/mes/chap4b.asp#5B._Money_Regression
Great, thanks for that - I’ll give them a read.
If I draw any conclusions from his work, I shall run them by you to make sure I haven’t been led astray 
You may not think it is the LTV, but it is at least a variant, from what I can tell. That is, it is a cost of production theory. Otherwise, there is no reason why prices would gravitate toward some value.
Thank you.
Absolutely 100% not.
You are mistaken. But the explanation as to why is rather complicated and I and not going to reveal all just yet.
It’s possible I’m misinterpreting your entire theory. If so, the readings I’ve suggested will not be as fruitful, since they were based on that interpretation.
Still, the comment about a point which the prices are gravitating toward is very close to classical theories of value.
I’ll quote Lachmann describing this: “For Sraffa, real-world market prices are determined by supply and demand. But behind them, as a centre of gravity, there lies the equilibrium position.”
market prices are determined by the marginal pairs.
I’m not looking for a good solution to the problem (I already have that :-)). What I really want is to read about other peoples attempts at a solution. The worse they are the better I’ll feel! The last thing I want is to find is that someone has a good solution already.
As I was half way through reading “The Origin of Money and Its Value” I was terrified because LvM’s thinking was looking dangerously close to my own, but luckily he seemed to take a detour at the last second and failed to solve the problem.
Perfectly true, but that doesn’t solve my original problem on its own.
your question just ask what the market wage rate is. what the market price of labour is. just survey and gather statistics. you are asking a purely empirical and contingent question
I can’t gather statistics in this hypothetical “sandwich society”.
Why don’t you just tell us what your idea is and we’ll tell you if we know of anyone who has ever said the same thing.
Because it soounds like you’re on an ego trip for the moment.
depends on demand for shekels. This is a function of the intrinsic value of shekels, people’s time preference for shekels, people’s subjective savings ratio, and volume of sandwiches traded…
In short, like all subjective phenomena of the market, it is impossible to say a priori.
The seeds of my idea are here.
By the way I am looking for a collaborator (preferably in London) that’s already in an academic institution to help me publish this work. If you have any suggestions then I’m all ears.
I glanced at your blog. How is this idea new? It just looks like a variant of standard GE theory. There are plenty of articles with some permutation of Walrasian GE.
Perhaps I’m being too harsh, but I don’t see this as an original idea.
“say we have a function W_gt(G,t) which expresses our feelings of wellbeing due to being the owner of a collection of goods G at time t. We can also have a similar function W_mt(M,t) which expresses our feelings of wellbeing due to being the owner of an amount of money M at time t.”
The leap between subjective feelings and monetary value is phenomenological. There are no general principles to shed light on here.
“would then finally give us an answer to my original question and actually tell use what assorted goods will cost in terms of whatever money there is in the model economy.”
If you actually manage to make a model that fits real life data well, your model will be placed in competition with other predictive models. In the end, it is all just data fitting; The structure of your final equations may have no praxeological significance. Again, your study is purely phenomenological.
Take for example the equation mechanical engineers use for behavior of steam. This equation has 56 parameters. No thermodynamicist claims these parameters reflect any fundamental principles. It simply works better than the Peng Robinson etc equations of state. This 56 parameter equation exists merely because it fits the data. If you do the same with prices in a particular economy, you will do no better.
Prices and value are determined at the margin, not on average.
I hear the Nobel commission publishes expert ass lickers.
What does GE stand for? Can you give me a reference/link?