Work

Reconsideration of Dimensions and Curve Fitting Practice in Economics Ellaborating on Georgescu-Roegen’s Economic Methodology

Year: 2011

Type: report

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-Douglas 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 thispaper with several epistemological issues in relation to dimensions and curve fitting practices in economics.

Source: Dipòsit Digital de Documents de la UAB (Universitat Autònoma de Barcelona)

Authors: Kozo Mayumi, Mario Giampietro, Jesús Ramos-Martín

Language: English

Topic: Economic Theory and Institutions

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funders: Universitat de Barcelona, Université de Bordeaux, Universitat Autònoma de Barcelona, University of Illinois at Urbana-Champaign

OpenAlex ID: W1595042844

Cites: 24

Cited by:

Related to: 10