It's all a question of scale. Try simply

Q/Q0 = (K/K0)^a (L/L0)^(1-a)

where the constant a is dimensionless, Q0 has dimensions of Q, K0 has 
dimensions of K, and L0 has dimensions of L.

--
David Rosnick
Economist
Center for Economic and Policy Research



On Aug 14, 2012, at 6:50 AM, Paul Cockshott wrote:

> In either case, a theory which is dimensionally inconsistent is suspect. 
> However there is the problem that one can derive empirical observations that 
> are governed by some functional form and which do tell us something about 
> regularities which exist in the economy. One approach to this is to say that 
> if the functional form is a polynomial with constants p=  a x^2 + b y+ cz^3  
> say then we can assume that the constants a, b, c have dimensions such as to 
> cancel out the dimensions given by the polynomial terms. The constants of 
> nature are given explicit dimension in order for them to do this.
> I am not quite sure how to handle this if the functional form we have is 
> exponential or logarithmic.
> ________________________________________
> From: [email protected] [[email protected]] On 
> Behalf Of Tom Walker [[email protected]]
> Sent: Monday, August 13, 2012 9:40 PM
> To: Progressive Economics
> Subject: Re: [Pen-l] math question
> 
> As I said, that is one possible interpretation. The other possibility is that 
> the "more important" flaws you enumerated (with the notable exception of 
> "deliberate ignorance of class relations") are symptoms. I would suggest that 
> the unit fallacy is the pseudo-scientific "flip side" of "deliberate 
> ignorance of class relations." It has the dual function of diverting 
> attention from class relations while at the same time concealing that is its 
> intention. This dual function becomes clear if you trace its origins back to 
> its more overtly ideological precursors in the 18th and 19th century.
> 
> On Mon, Aug 13, 2012 at 12:47 PM, Jim Devine 
> <[email protected]<mailto:[email protected]>> wrote:
> me:
>> "...while never examining the units used to measure its
>> ingredients..."
> 
> Tom Walker wrote:
>> ...  It's not a big deal? That supposes that
>> the "real flaw" is elsewhere and therefore the unit fallacy is subsidiary.
>> Although that is one possible interpretation, the other possibility is that
>> the will to express relations in non-existent units that is at the bottom of
>> all the rest of the hocus-pocus, in which case the unit fallacy is
>> foundational and not ornamental.
> 
> I'd say instead that the willingness to use non-existent units is a
> matter of sloppiness resulting from the insulation that many or even
> most macroeconomists have from serious criticism. Of course, that
> insulation is often created by economists themselves when they use
> unnecessary mathematics in the first place.
> 
> It's a definite flaw, but it seems less important than various other
> macroeconomics sins, including (in no particular order of importance):
> 
> - the very common failure to see the distinction between macro and
> micro (preferring to reduce the former to the latter, even while
> teaching students about the fallacy of composition);
> 
> - the use of a timeless model (with no true uncertainty) having no
> role for money (beyond being a means of exchange), so that Say's "law"
> applies;
> 
> - the use of an aggregate neoclassical production function;
> 
> - ignorance of how the existence and persistence of unemployment feeds
> back to transform micro-level results;
> 
> - obsession with equilibrium as somehow describing a real-world state;
> 
> - the assumption that the difference between idealized models and the
> messy real world is unimportant;
> 
> - deliberate ignorance of class relations;
> 
> etc.
> 
> --
> Jim Devine / If you're going to support the lesser of two evils, you
> should at least know the nature of that evil.
> _______________________________________________
> pen-l mailing list
> [email protected]<mailto:[email protected]>
> https://lists.csuchico.edu/mailman/listinfo/pen-l
> 
> 
> 
> --
> Cheers,
> 
> Tom Walker (Sandwichman)
> 
> The University of Glasgow, charity number SC004401
> _______________________________________________
> pen-l mailing list
> [email protected]
> https://lists.csuchico.edu/mailman/listinfo/pen-l

_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l

Reply via email to