[OPE-L:3332] Re: Re: Re: Measuring values

From: Michael Perelman (michael@ecst.csuchico.edu)
Date: Wed May 24 2000 - 21:44:41 EDT

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"Patrick L. Mason" wrote:

> I don't if you're in the minority or not, but when you state that "crises
> occur when prices diverge too much from values" you are arguing an
> empirical issue.

Yes, but I meant it in a qualitative sense.

> One that can be measured.

I don't see how it can be measured.

> However, you statement that "no
> precise formula for determining when the breaking point occurs" is a
> theoretic issue.

Yes, I agree that my point was theoretical.

> Conceivably, some type of empirical exercise --
> simulation, regression, descriptive statistics, callibrating a theoretical
> model, economic experiment -- might be quite useful in resolving the issue.

Here is where I disagree with you, but if anybody could succeed in discovering
how to measure it, I suspect that you could.

> I would only disagree with you if you that (as others have said) that one
> cannot in principle measure values or prices of production.

Yup, we disagree.

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321 E-Mail michael@ecst.csuchico.edu

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