Re: Economic Rent in Terms of Risk Free Interest Rate

In article <1126716568.599618.117320@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
"Ron Peterson" <ron@xxxxxxxxxxxxxx> wrote:

> ruetheday@xxxxxxxxxx wrote:

> > Most of Robert's arguments boil down to:
> > 1. Market economies are unlikely to efficiently allocate resources.
> > and
> > 2. The distribution of income that results from market processes is
> > unlikely to be equitable (the return to a factor will not equal its
> > marginal product).

> I haven't seen him make either claim.

In contradistinction to (1), I have often said that Pareto efficiency
is uninteresting.

I have often said that, because of price Wicksell effects, the
rate of interest is generally unequal to the marginal product of
capital. I doubt very much, however, that I've ever made the second
claim.

--
Mostly economics: <http://www.dreamscape.com/rvien/#PublicationsForFun>
r c
v s a Whether strength of body or of mind, or wisdom, or
i m p virtue, are found in proportion to the power or wealth
e a e of a man is a question fit perhaps to be discussed by
n e . slaves in the hearing of their masters, but highly
@ r c m unbecoming to reasonable and free men in search of
d o the truth. -- Rousseau
.