Re: [OPE-L] Incoherence of the TSSI

From: Philip Dunn (hyl0morph@YAHOO.CO.UK)
Date: Sat Oct 20 2007 - 08:13:25 EDT

This is one of M&V arguments.

"2.2 Example 2: "Proof" that P > O, C [greater than or equal to] 0
(Kliman & Freeman, 2006: 122) Kliman and Freeman's argument is that,
under commodity production, no prices are negative and some are
positive; inputs and gross outputs cannot be negative, and some outputs
must be positive. Therefore P > 0, C [greater than or equal to] 0. The
conclusion does not follow. That p and x are semi-positive vectors does
not imply that their product P is strictly positive."

Autistically, this is quite correct. Consider a two good economy with
price vector (0,a) and gross output vector (b,0). Clearly, P=0.  In
general, if the price is zero whenever there is positive output and
output is zero whenever there is a positive price, P=0.

However, no economic meaning can be attached to a positive price where
nothing is sold. No money changes hands. The only sensible thing to do
in this situation is to assign a zero price. But then, of course, all
prices are zero, in contradiction of the assumption of a semi-positive
price vector.

I have got a feeling it is all going to be like this.  What a waste of a

On Fri, 2007-10-19 at 17:03 -0400, glevy@PRATT.EDU wrote:
> > It is a pity that several equations are missing from this online
> > version.  It is a very short paper and is also short on measured
> > argument.
> Hi Phil:
> Good to hear from you.
> There are  other online versions of the article - which you can find with
> a google search using the title of the paper.
> As for it being short, most journals discourage long replies.  As you
> know,  Kliman and Freeman made quite a huff about the "right to reply" at
> _Capital & Class_.
> > Consensus? Not a chance.
> Ok! So we have near consensus!  :<(
> What part or parts of the following don't you agree with?
> > "In their use of logic, their reporting of the views of those with whom
> > they disagree, and in the elaboration of their own fundamental
> > categories, Kliman and Freeman leave something to be desired."
> In solidarity, Jerry

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