May 6, 2015

Walras' vacuonomics

Comment on ‘Bob Solow, Matt Rognlie, Paul Romer, Mason Gaffney, the economic statisticians and rent incomes’


Among the numerous defects of Walras' approach, the worst is that it deals with a zero-profit economy. In other words, it talks about capitalism without profit. So it has not much to say about the real world.

For the correct relationship between profit, distributed profit, and land ownership see Essentials of Constructive Heterodoxy: Institutions.

Egmont Kakarot-Handtke