Economic Calculation is Possible Without Prices

I argue three key points in this article. First, there are parameters which can substitute for prices to make any economic problem solvable. Second, prices themselves cannot emerge without these priors, so the priors are logically superior in necessity. Third, it’s possible for a single mind to plan the economy of a group in a … Read more

Rational Estimation and Price Under Uncertainty

This article talks about ways to deal with uncertainty, and I will also briefly define the concept in contrast with simple risk. Definitions: Uncertainty vs Risk Rational Estimation without Uncertainty Rational Estimation with Uncertainty 1 – Definitions: Uncertainty vs Risk Uncertainty and risk are both not simple economic phenomena. They are generic elements of complex … Read more

Summing Budget Lines Does Not Derive the Demand Curve

It’s a common exercise in undergraduate economics to sum individual budget constraints to derive a market demand curve, but this is wrong. Budget constraints are immune to changes in individual preference, but demand is not. Budget constraints do not include economic cost, but quantities demanded do include preference and economic cost information (see point 5) … Read more