A Macroeconomic Theory of Value Conversion

<p>This study develops a theory of value conversion in which conversion depends on realized consumption growth. By governing value conversion over time, consumption growth becomes a key determinant of output’s market value and a driver of broader economic expansion. The theory differs from conventional macroeconomic frameworks in two respects. First, it redefines production as an internal technological process combined with an external valuation process, so market-valued output depends not only on production but also on converting latent value into market value. Second, it reinterprets macroeconomic relations by treating household consumption as the starting point of causality.</p>