Re: [OPE-L] Robust correlations between prices and labour values

From: glevy@PRATT.EDU
Date: Wed May 03 2006 - 09:52:10 EDT


Hi again Alejandro,

What did you think of his reply (abstract below) printed in the same
issue of the _CJE_?  Clear as water?

In solidarity, Jerry




            Reply to Cockshott and Cottrell
            Andrew J. Kliman

            Cambridge Journal of Economics, 2005, vol. 29, issue 2, pages
              317-323

            Abstract: This note reaffirms the author's conclusion that
measured price--value correlations have been tainted by the
influence of industry size and are therefore spurious.
'Deflation' of sectoral prices and values by costs destroys
the correlation only because the theory in question is false,
as the author's original paper proved deductively. Cockshott
and Cottrell's results do not refute this proof. Deflation
destroys the correlation between their simulated prices and
values precisely because their simulation model assumes that
the theory is false.


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