On Jan 28, 2010, at 3:59 PM, Julio Huato wrote:
Michael Perelman wrote:
David, the method is flawed.
What do you mean by "the method," Michael? Do you mean a very
specific way in which a particular group of economists estimates costs
and benefits, or do you mean that, in general, every time humans try
to estimate the costs and benefits of their actions, they are
necessarily bound to reach flawed conclusions?
The flawed "method" is to express costs (C) and benefits (B) in the
same quantitative units (utils?, current euros? 1990 dollars? ounces
of gold?) so that it is not meaningless to say C<,=,or>B. Since C and
B both include nonquantifiable elements, are experienced by different
sets of people (costs paid by whom?benefits enjoyed by whom?), and
extend over an indefinitely long period of time for which no
appropriate discounting rate can possibly be determined, the "method"
is fatally flawed.
Shane Mage
This cosmos did none of gods or men make, but it
always was and is and shall be: an everlasting fire,
kindling in measures and going out in measures."
Herakleitos of Ephesos
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