That's what I meant by technical devices. However, commsurability is still maintained,a nd you can't talk about Pareto optimality without it, which is why I focused on that assumption. jks
[EMAIL PROTECTED] wrote:
jks wrote,
>The theory depends are two levels of questionable assumptions.. . .
Well actually at the level of "high theory" these assumptions have not been accepted since the development of the notion Pareto Efficiency. Informally, these assumptions have also not been accepted since the, I think, 1930s when it was argued that these assumptions led to the policy conclusion that income redistribution would lead to a higher level of "social welfare." You see, the rich _might- just have more refined tastes than the poor and, so, you can't presume that income redistribution will increase social welfare. Bla, bla, bla.
At the level of applied micro, what you point out is more of a problem (as I pointed out was the case in most undergraduate applied micro classes). They start out with the high theory assumptions (can compare utility, etc) but then slip into utility compar! ison quietly when they hope no one is looking.
Eric
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