[OPE-L:5492] Re: Humbug Aggregate Price-Value Correlations

Gerald Levy (glevy@pratt.edu)
Fri, 19 Sep 1997 12:50:40 -0700 (PDT)

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Andrew K, in [OPE-L:5491], quotes Paul C thusly:

> "Whether prices correspond to values is of course a different question, and
> the answer is that on average they do, in the sense that they are highly
> correlated."

He then begins by writing:

> Imagine the following hypothetical 3-sector economy, with the following
> *unit* prices (P) and *unit* values (V). <snip>

This doesn't address the issue that Paul is posing. Paul asserts
above *as an empirical matter* that prices and values *are* highly
correlated. Now, you could object to Paul (and Allin's) empirical
methodology and/or practice. Or, you could challenge the conclusions drawn
from their empirical study. But, once we start to "imagine the following
hypothetical 3-sector economy", then we are dealing with another issue
(and pace Andrew -- level of abstraction) entirely -- one that, IMHO, is
far removed from a empirical examination of actual and contemporary
capitalist economies.

In solidarity, Jerry