Deficiencies of the Three-Factor Theory of Value

The marginal productivity theory is the modern form of three-factor value. It fundamental used in Western economics to describe value creation, as well dealing with wealth category. Its original “trinity formula,” composed three propositions and formulated more than 200 years ago by Jean-Baptiste Say. Because internal logical defects propositions, formula” merely a hypothesis, cannot be accepted scientific “theory.” proposed 100 John Bates Clark, subsequently developed further other researchers. theory, however, still suffers from logic, and, correspondingly, external theoretical difficulties. article explains that factor value, has deficiencies. First, subject distribution defined; second, contributions made factors third, ownership defined.