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Re: "infinite wants" vs. decreasing marginal propensity to consume



On Fri, 31 Oct 1997, Gregoire de Nowell (ci-devant) wrote:
>
> There is, furthermore, a kind of Zeno's paradox involved
> in the argument that we are always consuming more as
> income increases because we are continually decreasing
> the MPC towards zero without ever getting there.  At some
> point we reach fractional values where it might as well
> be zero, for example, whent he MPC reaches a fraction
> of 1%.

Another problem with MPC as with all marginal untility theory, is that it
assumes individuals always have the option of giving things up
"continuously" when, in reality, we give things up "discretely".
A while back Paul Rosenberg made this point as well.

Harry Veeder


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