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Reconsideration of Dimensions and Curve Fitting Practice in View of Georgescu-Roegen’s Epistemology in Economics

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Author Info

  • Kozo Mayumi

    ()
    (Faculty of Integrated Arts and Sciences, The University of Tokushima, Minami-Josanjima 1-1, Tokushima City 770-8502, Japan.)

  • Mario Giampietro

    (ICREA Research Professor, Institute of Environmental Science and Technology (ICTA), Autonomous University of Barcelona (UAB), 08193 Bellaterra, Barcelona, Spain)

  • Jesus Ramos-Martin

    (Department of Economics and Economic History, and Institute of Environmental Science and Technology (ICTA), Autonomous University of Barcelona (UAB), 08193 Bellaterra, Barcelona,Spain)

Abstract

This paper is to examine the proper use of dimensions and curve fitting practices elaborating on Georgescu-Roegen’s economic methodology in relation to the three main concerns of his epistemological orientation. Section 2 introduces two critical issues in relation to dimensions and curve fitting practices in economics in view of Georgescu-Roegen’s economic methodology. Section 3 deals with the logarithmic function (ln z) and shows that z must be a dimensionless pure number, otherwise it is nonsensical. Several unfortunate examples of this analytical error are presented including macroeconomic data analysis conducted by a representative figure in this field. Section 4 deals with the standard Cobb-Douglass function. It is shown that the operational meaning cannot be obtained for capital or labor within the Cobb-Douglas function. Section 4 also deals with economists’ “curve fitting fetishism”. Section 5 concludes this paper with several epistemological issues in relation to dimensions and curve fitting practices in economics.

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Bibliographic Info

Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

Volume (Year): (2012)
Issue (Month): 4 (December)
Pages: 17-35

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Handle: RePEc:rjr:romjef:v::y:2012:i:4:p:17-35

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Keywords: dimensions; logarithmic function; Nicholas Georgescu-Roegen; macroeconomics; Cobb-Douglas function; econometrics; curve fitting; transcendental production function;

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  1. Mayumi, Kozo & Giampietro, Mario & Gowdy, John M., 1998. "Georgescu-Roegen/Daly versus Solow/Stiglitz Revisited," Ecological Economics, Elsevier, vol. 27(2), pages 115-117, November.
  2. Deirdre N. McCloskey & Stephen T. Ziliak, 1996. "The Standard Error of Regressions," Journal of Economic Literature, American Economic Association, vol. 34(1), pages 97-114, March.
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  6. Mayumi, Kozo & Giampietro, Mario, 2010. "Dimensions and logarithmic function in economics: A short critical analysis," Ecological Economics, Elsevier, vol. 69(8), pages 1604-1609, June.
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  10. Ramos-Martin, Jesus & Giampietro, Mario & Mayumi, Kozo, 2007. "On China's exosomatic energy metabolism: An application of multi-scale integrated analysis of societal metabolism (MSIASM)," Ecological Economics, Elsevier, vol. 63(1), pages 174-191, June.
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  12. Ramos-Martin, Jesus, 2003. "Empiricism in ecological economics: a perspective from complex systems theory," Ecological Economics, Elsevier, vol. 46(3), pages 387-398, October.
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  16. Robert E Lucas, 1999. "Making a Miracle," Levine's Working Paper Archive 2101, David K. Levine.
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