Value Product

The value product (VP) is an
economic concept formulated by
Karl Marx in his critique of
political economy during the
1860s, and used in Marxian
social accounting theory for
capitalist economies. Its annual
monetary value is approximately
equal to the netted sum of six
flows of income generated by
production:
wages & salaries of employees.
profit including distributed and
undistributed profit.
interest paid by producing
enterprises from current gross
income
rent paid by producing
enterprises from current gross
income, including land rents.
tax on the production of new
value, including income tax and
indirect tax on producers.
fees paid by producing
enterprises from current gross
income, including royalties,
certain honorariums and
corporate officers' fees, and
certain leasing fees incurred in
production and paid from
current gross income.
The last five money-incomes are
components of realized surplus
value. In principle, the value
product also includes unsold
inventories of new outputs.
Marx's concept corresponds
roughly with the concept of
value added in national
accounts, with some important
differences (see below) and with
the proviso that it applies only to
the net output of capitalist
production, not to the valuation
of all production in a society,
part of which may of course not
be commercial production at all.