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I have seen the enemy, and he is an economist Economic lessons for the ecologically literate. Jon D. Erickson Rubenstein School of Environment and Natural Resources University of Vermont. Academic Autism. Autism, a disorder characterized by: - PowerPoint PPT Presentation
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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