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

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  • 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.

Suggested Citation

  • Kozo Mayumi & Mario Giampietro & Jesus Ramos-Martin, 2012. "Reconsideration of Dimensions and Curve Fitting Practice in View of Georgescu-Roegen’s Epistemology in Economics," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 17-35, December.
  • Handle: RePEc:rjr:romjef:v::y:2012:i:4:p:17-35
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    References listed on IDEAS

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    More about this item

    Keywords

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

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C45 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Neural Networks and Related Topics

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