From: Philip Dunn (hyl0morph@YAHOO.CO.UK)
Date: Sat Oct 20 2007 - 08:13:25 EDT
This is one of M&V arguments. "2.2 Example 2: "Proof" that P > O, C [greater than or equal to] 0 (Kliman & Freeman, 2006: 122) Kliman and Freeman's argument is that, under commodity production, no prices are negative and some are positive; inputs and gross outputs cannot be negative, and some outputs must be positive. Therefore P > 0, C [greater than or equal to] 0. The conclusion does not follow. That p and x are semi-positive vectors does not imply that their product P is strictly positive." Autistically, this is quite correct. Consider a two good economy with price vector (0,a) and gross output vector (b,0). Clearly, P=0. In general, if the price is zero whenever there is positive output and output is zero whenever there is a positive price, P=0. However, no economic meaning can be attached to a positive price where nothing is sold. No money changes hands. The only sensible thing to do in this situation is to assign a zero price. But then, of course, all prices are zero, in contradiction of the assumption of a semi-positive price vector. I have got a feeling it is all going to be like this. What a waste of a Saturday. On Fri, 2007-10-19 at 17:03 -0400, glevy@PRATT.EDU wrote: > > It is a pity that several equations are missing from this online > > version. It is a very short paper and is also short on measured > > argument. > > Hi Phil: > > Good to hear from you. > > There are other online versions of the article - which you can find with > a google search using the title of the paper. > > As for it being short, most journals discourage long replies. As you > know, Kliman and Freeman made quite a huff about the "right to reply" at > _Capital & Class_. > > > Consensus? Not a chance. > > Ok! So we have near consensus! :<( > > What part or parts of the following don't you agree with? > > > "In their use of logic, their reporting of the views of those with whom > > they disagree, and in the elaboration of their own fundamental > > categories, Kliman and Freeman leave something to be desired." > > In solidarity, Jerry ___________________________________________________________ All new Yahoo! Mail "The new Interface is stunning in its simplicity and ease of use." - PC Magazine http://uk.docs.yahoo.com/nowyoucan.html
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