Holistic properties & National Accounting

["Bruce R. McFarling" <ecbm@xxxxxxxxxxxxxxxxxxx>]

I recently received an email from Tracy Lightcap that read,
in reference to my discussion of holistic system properties:

> ... R. Lewontin, the biologist, refers to them as emergent properties:
>properties that are caused by actions of subordinate components but which
>cannot be explained by reference to causal linkages in the subordinate
>components. Respiration is caused by the action of specialized cells in
>the lungs, but cannot be explained by refering to how lung cells function
>individually. By the same token, individuals in organizations can be safely
>assumed to be motivated by utility maximization, but organizational
>characteriztics commonly involve values which contradict individual
>calculations. Again, an emergent property.

	I would disagree with the assertion that individuals in
organisations can safely be assumed to be utility maximisation,
barring strong restrictions on the economic behavior under
consideration, and as pkt subscribers may be aware I argue that
these restrictions make utility maximisation inappropriate as
general microfoundations for Post Keynesian macroeconomics.
	However, that quibble can be laid aside, since Tracy's point
may be restated as "even if it is granted, for the sake of argument,
that individuals in organisations may be assumed to be motivated by
utility maximisation, organisational characteristics commonly
involve ..." and on the main point we are in complete agreement.
What is the avenue by which the emergent properties of the economic
system will be reflected in a quantity index *however constructed*?


Virtually,

Bruce McFarling, Newcastle, NSW
ecbm@xxxxxxxxxxxxxxxxxxx