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Dimensional Analysis of price-value deviations

  title={Dimensional Analysis of price-value deviations},
  author={Nils Fr{\"o}hlich},
This paper discusses the methodological criticism of price-value deviation measures put forward by Díaz and Osuna (2007, 2009). The authors argue that the relation between different price systems cannot be empirically quantified at all because the results would always depend on arbitrary physical units. But applying Dimensional Analysis shows that this conclusion is not correct. Instead, the usual ways of estimating deviations from prices to values used in the literature are valid, at least in… 

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