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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 95929Tel. 530-898-5321 E-Mail michael@ecst.csuchico.edu
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