Economics in the Future - download pdf or read online

By Kurt Dopfer (eds.)

ISBN-10: 0333195035

ISBN-13: 9780333195031

ISBN-10: 1349156752

ISBN-13: 9781349156757

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W. Schultz 24 and B. R. Chiswick 25 have suggested the theory that income differences are largely due to differences in schooling. The latter are explained by the individual decisions on the number of years of schooling and it seems intuitively obvious that among the determinants of these decisions the expected yields play their part. Since several tests of this simple economic theory of income distribution were not completely satisfactory, and the operation of other forces could be expected to interfere, the theory was extended in various directions.

The endogenisation of variables of the body politic into economic models, as has been attempted by the new school of politometrics, is instrumental for conclusive statements about the probability of the actual implementation of plans, government policies or social objectives. 3g As far as the economic and political systems in these models are kept constant,39 an extension of the (simulation and empiricist) models will prove necessary when the social desiderata demand changes in these systems themselves, for example changes in institutions and behavioural premises of the two systems.

P. S. (net national satisfactions) being an aggregation of final goods measured in units of well-being or states of consciousness. The final goal of any scientific inquiry is a general theory: in welfare economics this means a general theory of welfare. This has been attempted by choosing axioms and by formalising the conceivable alternatives within these axioms. The axioms in fact were not 'general' in the sense which would mean validity for all historical instances. Their historical nature, however, has been veiled by the assumption that choices among axioms are based solely on value judgements.

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Economics in the Future by Kurt Dopfer (eds.)


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