Showing papers by "Kenneth J. Arrow published in 1985"
TL;DR: The prestige status of pure economic theory has never been higher; and yet there is now, as there has always been, a pervasive scepticism about the descriptive power and normative utility of Walrasian or other varieties of the theory of general competitive equilibrium as discussed by the authors.
Abstract: The prestige status of the purest of pure economic theory has never been higher; and yet there is now, as there has always been, a pervasive scepticism about the descriptive power and normative utility of Walrasian or other varieties of the theory of general competitive equilibrium.1 The mutual adjustment of prices and quantities represented by the neoclassical model is an important aspect of economic reality worthy of the serious analysis that has been bestowed on it; and certain dramatic historical episodes suggest that an economic mechanism exists that is capable of adaptation to radical shifts in demand and supply conditions.
67 citations
Book•
01 Jan 1985
TL;DR: The economic implications of learning by doing are discussed in this article, where the authors compare the International Comparisons of Factor Efficiency with the CES Production Function: Reply with a production function for the Repairman Problem.
Abstract: 1 On the Use of Winds in Right Planning 2 Optimal Inventory Policy 3 Capital-Labor Substitution and Economic Efficiency 4 Economic Welfare and the Allocation of Resources for Invention 5 Optimal Capital Adjustment 6 Optimal Advertising Policy under Dynamic Conditions 7 The Economic Implications of Learning by Doing 8 Optimal Capital Policy, the Cost of Capital, and Myopic Decision Rules 9 Knowledge, Productivity, and Practice 10 Criteria for Social Investment 11 Discounting and Public Investment Criteria 12 Some Tests of the International Comparisons of Factor Efficiency with the CES Production Function: Reply 13 Optimal Capital Policy with Irreversible Investment 14 Applications of Control Theory to Economic Growth 15 Classificatory Notes on the Production and Transmission of Technological Knowledge 16 Optimal Consumer Allocation over an Infinite Horizon 17 Optimal Public Investment Policy and Controllability with Fixed Private Savings Ratio 18 Uniqueness of the Internal Rate of Return with Variable Life of Investment 19 The Social Discount Rate 20 Optimal Growth with Irreversible Investment in a Ramsey Model 21 Uncertainty and the Evaluation of Public Investment Decisions 22 Uncertainty and the Evaluation of Public Investment Decisions: Reply 23 A Production Function for the Repairman Problem 24 The Measurement of Real Value Added Index
27 citations
Posted Content•
21 citations
TL;DR: It is no part of economics, certainly not of modern post-1870 economics, to argue the purpose of the economy's production as mentioned in this paper, and in no sense is mere production as such a proper measure, rather, it has to be production for the ends that people want.
Abstract: It is no part of economics, certainly not of modern post-1870 economics, to argue the purpose of the economy’s production.1 The purpose of the economy is the welfare of the consumers, public and private. In no sense is mere production as such a proper measure, rather, it has to be production for the ends that people want. Output, income, and consumption are important aims and preconditions for achieving other goals of individuals; that is, they are only a part of what people live for.
10 citations
Book•
01 May 1985
TL;DR: The relation between competitive equilibrium and the possibility of technical information is more complex than I anticipated as mentioned in this paper, and there seem no simple conditions which would characterize the existence of equilibrium, though its existence prescribes close relation between scale of output and amount of information purchased.
Abstract: : It is obvious that production requires information; in standard general competitive equilibrium theory, this information is embodied in the production possibility set. This kind of information may be called, technical information; it may be thought of as a recipe. The standard treatment is correct so long as information can be taken as given and not subject to alteration by deliberate choice. But in fact the acquisition of new technical information has proceeded on an increasingly rapid scale in the last century or more, and the volume of resources devoted to it has become very large. This fact has been much studied under the heading of the economics of research and development. In this paper, I want to concentrate on one particular aspect, the relation between research and development and the viability of competitive equilibrium. The relation between competitive equilibrium and the possibility of technical information is more complex than I anticipated. Clearly, competitive equilibrium is not impossible, though its existence prescribes close relation between scale of output and amount of information purchased. On the other hand, there seem no simple conditions which would characterize the existence of equilibrium.
9 citations