IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/2040.html
   My bibliography  Save this paper

The indeterminacy of price-value correlations: a comment on papers by Simo Mohun and Anwar Shaikh

Author

Listed:
  • Freeman, Alan

Abstract

This paper is the first published critique of the indeterminacy of price-value correlations and their inadequacy as empirical evidence for the determination of prices by values. It comments on the approach developed by Shaikh, Petrovic, Parys, Ochoa and others, according to which prices, as asserted by Ricardo, are empirically ‘97%’ determined by values. This method calculates measures of distance (according to some or other measure such as Mean Absolute Distance, or correlation) between a vector of empirically-observed average price of a set of industrial sectors, and a vector of aggregate values calculated as the vertically-integrated labour coefficients of the same set of industrial sectors. The present paper suggests, and establishes using a Monte Carlo method, that the observed correlations are most likely to ‘spurious’ since they can be entirely accounted for by variations in the size of the industrial sectors concerned. The paper was published in the same volume as the paper from Anwar Shaikh to which it responds, as well as another by Simon Mohun on which the paper also comments. (Bellofiore, R (ed) Marxian Economics: a Reappraisal, Volume 2, pp139-162. Basingstoke: McMillan) The controversy was subsequently developed in a number of exchanges including, in particular, papers in the Cambridge Journal of Economics between Andrew Kliman, Paul Cockshott and Allin Cottrell. It has further been discussed in papers by Ruben Osuna and Emilio Diaz which are at the time of submission unpublished, and in papers by Tsoulfidis and Maniatis also in the Cambridge Journal of Economics.

Suggested Citation

  • Freeman, Alan, 1998. "The indeterminacy of price-value correlations: a comment on papers by Simo Mohun and Anwar Shaikh," MPRA Paper 2040, University Library of Munich, Germany, revised 1998.
  • Handle: RePEc:pra:mprapa:2040
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/2040/1/MPRA_paper_2040.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Freeman, Alan, 1991. "National Accounts in Value Terms: The Social Wage and Profit Rate in Britain 1950-1986," MPRA Paper 52760, University Library of Munich, Germany, revised 05 Feb 1991.
    2. Shaikh,Anwar M. & Tonak,E. Ahmet, 1997. "Measuring the Wealth of Nations," Cambridge Books, Cambridge University Press, number 9780521564793.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Alan Freeman, 2010. "Crisis and “law of motion” in economics: a critique of positivist Marxism," Research in Political Economy,in: The National Question and the Question of Crisis, volume 26, pages 211-250 Emerald Publishing Ltd.

    More about this item

    Keywords

    TSSI; Temporalism; Temporal; Marx; Value; Price; Transformation; non-equilibrium; history of thought;

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C46 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Specific Distributions
    • B24 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Socialist; Marxist; Scraffian
    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • B23 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Econometrics; Quantitative and Mathematical Studies
    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:2040. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.