i have seen the enemy, and he is an economist economic lessons for the ecologically literate
Post on 18-Feb-2016
18 Views
Preview:
DESCRIPTION
TRANSCRIPT
I have seen the enemy,and he is an economist
Economic lessons for the ecologically literate
Jon D. EricksonRubenstein School of
Environment and Natural ResourcesUniversity of Vermont
Academic Autism
Autism, a disorder characterized by:• Absorption in self-centered subjective
mental activity (such as daydreams, fantasies, delusions, and hallucinations)
• Marked deficits in communication and social interaction
• Marked withdrawal from reality• Abnormal behavior, such as . . . excessive
attachment to certain objects
Fundamental Theorems ofWelfare Economics
1. Pareto Efficiency implied by:a. Maximization of consumer preferences
under budget constraints.b. Maximization of profits under technology
constraints.
2. Any Pareto Efficient outcome can be supported with lump sum transfers.
Policy Implications
Theorem 1 Exhaust Pareto Improvements
Theorem 2 Exhaust Potential Pareto Improvements
MB = MC
Organization of Society
Maximize individual well-being (utility)Maximize per capita consumption Maximize per capita GDP (production) Maximize GDP Specialization & exchange Free market capitalism World trade Globalization Maximize GWP
Pillars of the First Theorem
1. A theory of human behavior based on an isolated, rational, self-maximizing individual at a point in time
2. A theory of firm behavior based on perfect competition, production as allocating fixed resources, and exogeneous technical change
The Efficiency Criterion requires we:
• Ignore interpersonal, intergenerational, and interspecies comparisons
• Accept the rational actor model of human behavior
• Accept perfect competition• Accept an economic system devoted to
material production, free of social and biophysical constraints
top related