tag:blogger.com,1999:blog-26706564.post22615459405717056..comments2024-03-25T07:51:47.758-04:00Comments on Thoughts On Economics: Colin Rogers and Ian Steedman Down UnderRobert Vienneauhttp://www.blogger.com/profile/14748118392842775431noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-26706564.post-89153580506591921972010-02-24T10:37:43.067-05:002010-02-24T10:37:43.067-05:00Robert; in traditional neoclassical theory long-ru...Robert; in traditional neoclassical theory long-run means equalization of the rate of profit across sectors and actual production = natural production. The economy is always moving in that direction, but in fact, it never reach it. In this contexts, keyensian policies may help.<br />But of course, Arrow-Debreu model is made of a very differente stuff.<br /><br />GualraEmilianohttps://www.blogger.com/profile/02184687935121352413noreply@blogger.comtag:blogger.com,1999:blog-26706564.post-9588579456566186832010-02-23T15:11:09.335-05:002010-02-23T15:11:09.335-05:00And not only does each state of expectations creat...And not only does each state of expectations create its own long-term outcome, but there are multiple sets of long term expectations that create long term outcomes consistent with the expectations, there is no way <i>a priori</i> to know whether ones own state of expectations is necessarily among one of these "feasibly" expectations, and with neither change in one individual's expectations nor in the concrete facts, changes in other's expectations can swing an expectation back and forth between feasibly true and not feasibly true.<br /><br />So the "long run" in the neoclassical sense is not the kind of thing that exists in the real world.BruceMcFhttps://www.blogger.com/profile/08502035881761277885noreply@blogger.com