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

From: Michael Webber <>
Date: Mon Oct 18 2010 - 07:24:26 EDT

i'd be interested in reading this paper. it sounds fascinating.

2010/10/17 Alejandro Valle Baeza <>

> "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" Investigacin econmica, 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
> _______________________________________________
> ope mailing list

Michael Webber
Professorial Fellow
Department of Resource Management and Geography
The University of Melbourne
Mail address: 221 Bouverie Street, Carlton, VIC 3010
Phone: 0402 421 283

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Received on Mon Oct 18 07:32:14 2010

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