re: Neo-classical gas

[Rod Hay <rodhay@xxxxxxxxxx>]

Since it was me who wrote this I will respond. Max is right that in a
partial equilibrium model, the welfare of others can be included as a
variable in a utility function. But if it is done in a general
equilibrium model, the number of variables exceeds the number of
equations and there is no unique equilibrium. So we were talking about
different things.

Rod

Max wrote
Then there's the poop about micro theory not being
capable of modelling altruistic behavior, something
any putz -- including me -- who had cracked a public
finance text would know is wrong.

--
Rod Hay
rodhay@xxxxxxxxxx
The History of Economic Thought Archive
http://socserv2.mcmaster.ca/~econ/ugcm/3ll3/index.html
Batoche Books
http://Batoche.co-ltd.net/
52 Eby Street South
Kitchener, Ontario
N2G 3L1
Canada