Quarterly Journal of Austrian Economics

 

The first sections of this paper consider, respectively, the following two problems that arise when dimensions are not correctly included in economic models: (1) those that are meaningless or economically unreasonable; and,

(2) those that are inconstant—i.e., the same constant or variable having different dimensions, as if velocity were sometimes measured in meters per second and other times measured in meters only or in meters squared per second. The third section provides a macroeconomic example of the 'dimensions problem” from an article in a recent issue of a leading English language economics journal. Section four contains a discussion; and the final

section, the conclusions.