----- Original Message -----
From: "Devine, James" <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Thursday, February 07, 2002 9:27 AM
Subject: [PEN-L:22533] RE: Re: : Premises, Circularities


Assuming that ETIR refers to ECONOMIC THEORY IN RETROSPECT, I don't own a
copy. Could you please give one example? I don't see why we're "at an
impasse regarding this issue" if you could provide an example. -- JD

================
Yes it's that book.

When you wrote:

I wrote:
>> If I remember correctly, Robinson interpreted Marx's law of value as a
Ricardian labor theory of price. Given that assumption (i.e., that the point
of values was to explain price), _of course_ she should have  rejected it.
That's an important reason to reject that misinterpretation, the basis of
almost all criticisms of Marx's heuristic. (Weirdly, that  misinterpretation
is shared both by most critics of Marx's law of value and also by many
"fundamentalists." They then feed each others' misconceptions.)<<



I took this to mean that the quest to get a price theory out of KM's  theory of value 
was a mistake.
In quoting KM I was pointing to that section of Capital which seems to be what led 
many commentators
to start their explorations of the causal relationship[s], if any, between values and 
prices. Since
those relationships are empirical they are in constant conjunction, issues of 
non-equilibrium,
non-linearity, convergence and divergence aside, no? If they're not in constant 
conjunction how can
any quantitative model even get started to track the dynamics so that the results can 
serve as data
in need of explanation?

To that extent KM was caught up in Ricardo's quest for an invariance condition/measure 
for the
theory of value. So if the LoV and or LTV are true by definition how can we even get 
to the
empirical realm for the sake of testing, let alone confirming or refuting the
entailments--correlations of values/prices-- unless auxiliary concepts are invoked? If 
on the other
hand they are not apriori, as KM insisted they weren't, then all non-equivalent 
entailments
[specific models] regarding the quantitative correlations between values and prices 
points to
problems with the terms by which the LoV and LTV are defined because the auxiliary 
concepts would be
superfluous in facilitating understanding of the correlations. To then say that the 
definitions are
non-revisable and indispensable because they're apriori is to argue in a circle 
because then we
would need to show why every set of auxiliary concepts used to facilitate the 
correlation of
entailments leads to both models that are equivalent and models that aren't. If we say 
the problems
are with the auxiliary concepts then we're back to saying either the LoV and LTV are a 
priori and
the attempt to get a causal model of value/price correlations is moot; so we're back, 
again, to what
does the LoV and LTV explain?

Ian

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