[PEN-L:8295] Re: Bengali famine

[Rod Hay <rodhay@xxxxxxxxxxx>]

There are two separate issues.
1. Is the market economy desirable?
2. Is neoclassical economics usefull in analysing a market economy?

Neoclassical economists confuse the issues.
to question (1) they argue that ideally a "free market economy" is optimal.
It appears to me that Sen is arguing that even if it is "optimal" in the
neoclassical sense it is often not desirable in the ethical sense.

Brad seems to be discussing the second issue, and saying that neoclassical
economics properly done is useful as an analytic tool. For instance Sen uses
that method of analysis to show the immorality of some market outcomes.



Rod Hay
rodhay@xxxxxxxxxxx
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