nregtestrel: Nonregression-based Measures of Deviation.

In clptheory: Compute Price of Production and Labor Values

Nonregression-based Measures of Deviation.

Description

This function computes various non-regression based measures of deviation between the vector of all possible relative labor values and the vector of all possible relative prices of production.

Usage

nregtestrel(x, y, w, w_avg, mev, Q)

Arguments

x	price vector (1 x n).
y	value vector (1 x n).
w	nominal wage rate vector (1 x n).
w_avg	average nominal wage rate (scalar)
mev	monetary expression of value using gross output (scalar)
Q	gross output vector (n x 1).

Value

A list with the following elements:

rmse	Root mean squared error
mad	Mean absolute distance
mawd	Mean absolute weighted distance
cdm	Classical distance measure
angle	Angle between the two vectors (in degrees)
distangle	Distance computed using the angle
lrelpplv	Length of the relative price of production (or labor value) vector

References

Basu, Deepankar and Moraitis, Athanasios, "Alternative Approaches to Labor Values andPrices of Production: Theory and Evidence" (2023). Economics Department Working Paper Series. 347. URL: https://scholarworks.umass.edu/econ_workingpaper/347/

Examples

# Input-output matrix
A <- matrix(
data = c(0.265,0.968,0.00681,0.0121,0.391,0.0169,0.0408,0.808,0.165),
nrow=3, ncol=3, byrow = TRUE
)
# Direct labor input vector (complex)
l <- matrix(
data = c(0.193, 3.562, 0.616),
nrow=1
)
# Real wage bundle
b <- matrix(
data = c(0.0109, 0.0275, 0.296),
ncol=1
)
# Gross output vector
Q <- matrix(
data = c(26530, 18168, 73840),
ncol=1
)
# Direct labor input vector (simple)
l_simple <- l
# Market price vector
m <- matrix(data = c(4, 60, 7),nrow=1)
# Uniform nominal wage rate
wavg <- m%*%b
# Vector of nominal wage rates
w <- matrix(data=rep(wavg,3),nrow=1)
# Value of labor power
v <- 2/3
# Compute prices of production using NI
ni1 <- ppnewint1(A = A,l = l,w = wavg[1,1],v=v,Q = Q,l_simple = l)
# Nonregression-based measures of deviation
nregtestrel(x=ni1$ppabs,y=ni1$lvalues,w=w,w_avg=wavg[1,1],mev=ni1$mevg,Q=Q)

clptheory documentation built on April 4, 2023, 5:15 p.m.