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

Kozo Mayumi (), Mario Giampietro and Jesus Ramos-Martin
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Mario Giampietro: ICREA Research Professor, Institute of Environmental Science and Technology (ICTA), Autonomous University of Barcelona (UAB), 08193 Bellaterra, Barcelona, Spain

Journal for Economic Forecasting, 2012, issue 4, 17-35

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.

Keywords: dimensions; logarithmic function; Nicholas Georgescu-Roegen; macroeconomics; Cobb-Douglas function; econometrics; curve fitting; transcendental production function (search for similar items in EconPapers)
JEL-codes: C13 C45 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (2)

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