Re: [OPE] Dimensional analysis of price-value correspondence: a sp urious case of spurious correlation

From: Paul Cockshott <>
Date: Sun Oct 17 2010 - 09:49:30 EDT

I would be very interested in seeing it.

--- original message ---
From: "Alejandro Valle Baeza" <>
Subject: [OPE] Dimensional analysis of price-value correspondence: a spurious case of spurious correlation
Date: 17th October 2010
Time: 1:35:28 pm

"No agreement has been reached as to what labor theory of value is (Foley, 2000), Itoh, 1988; Kliman, 2006; Laibman, 1992 and Mohun, 2000). Paradoxically there are empirical studies showing strong association between labor values and market prices. Such works could inject new energy into Marxist theory of value; nevertheless some critics have questioned such empirical findings because: a) there is a problem of spurious correlation involved, and b) measures of association vary with changes in the physical units of the analyzed merchandises. We shall see that in this discussion there is a difficulty stemming from the definition of the problem as well as the question of the dimension of the mathematical models used. My main conclusions state that critics are wrong, and empirical studies are solid enough. These conclusions will be supported by two reasons: a) the existence of a spurious correlation does not apply to this problem according to the dimensional analysis, so well known in natural sciences, but seldom applied in economical problems; and b) dimensional analysis is essential to adequately pose the price-value association problem and thus to obtain measures that do not change with modifications of units of measurement."
This quote is from my forthcoming paper:
"Dimensional analysis of price-value correspondence: a spurious case of spurious correlation" Investigación económica, vol. LXIX, 274, octubre-diciembre de 2010, pp. ¿¿-??
The paper will be published in English and I will send a copy to any body interested on it
Alejandro Valle Baeza

The University of Glasgow, charity number SC004401

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