A comment on Andrew's OPE-L:5514:
Andrew remarks:
..
>
>The data lead to an unambiguous answer: yes, he did. MAD's of 20-27 0mply
>that the amount of value that is redistributed across sectors and across
>countries is not negligible. In other words, it is illegitimate to conclude
>that the factors which cause redistribution of value are unimportant in
>accounting for ("explaining") observed price magnitudes.
I'm intrigued by the idea of measuring the price/value deviation by the
amount of surplus value actually redistributed across sectors. This is on
the trail of an economically meaningful measure of the dispersion, which,
as I said in an earlier post, seems very desirable in this debate.
Duncan
Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
(212)-854-3790
fax: (212)-854-8947
e-mail: dkf2@columbia.edu