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Economic explanation, ordinality and the adequacy of analytic specification

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Author Info
Donald W. Katzner
Peter Skott

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Abstract

This paper examines the implicit links between models containing ordinal variables and their underlying unquantified counterparts that are necessary to make the former viable theoretical constructions. It is argued that when the underlying unquantified structure is unknown, the permissible transformations of scale applicable to the ordinal variables have to be restricted beyond that which is permitted by dint of the ordinality itself. The possibility of an underlying structure being known but unspecified is also considered. In the case of the efficiency wage model, the only usable transformations of the ordinal effort scale are those which are multiples of each other.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Journal of Economic Methodology.

Volume (Year): 11 (2004)
Issue (Month): 4 (December)
Pages: 437-453
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Handle: RePEc:taf:jecmet:v:11:y:2004:i:4:p:437-453

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Related research
Keywords: Ordinal variable; unquantified variable; effort; efficiency wage theory;

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Cited by:
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  1. Peter Skott & Frederick Guy, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," Working Papers 2005-17, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
    Other versions:
  2. Peter Skott & Frederick Guy, 2007. "Power, productivity and profits," Working Papers 2007-02, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
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This page was last updated on 2009-11-14.


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