The Harberger triangles may be a small fraction of GNP but there are big rectangles to the left of those triangles. They will not be trivial in many markets. These rectangles represent the consumer surplus transferred to monopolists. While neoclassical economists don't seem to like talking about these they are not really that easy to hide.
Neoclassical economics has a theory of distribution that tries to explain factor incomes using marginal products. But those Harberger rectangles (if I can call them that) will add up to a significant share of gross national income. This is probably the topic of another article but needs to be kept in the back of our minds. David Richardson The Australia Institute -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of michael perelman Sent: Friday, 7 August 2009 1:44 PM To: Progressive Economics Subject: [Pen-l] Harberger Triangles, Okun Gaps, and X Efficiency I have written a paper that uses two episodes to illustrate the nature of Chicago economics. It is being rewritten for a mainstream journal, so I have to pull my punches. I would appreciate any comments. Read more at: http://michaelperelman.wordpress.com/2009/08/07/harberger-triangles-okun-gap s-and-x-efficiency/ -- Michael Perelman Economics Department California State University Chico, CA 95929 530 898 5321 fax 530 898 5901 http://michaelperelman.wordpress.com _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
