This paper offers a precise definition of neoclassical economics based on three axioms which lie at the latters foundations. This definition is all inclusive in that it applies as much to the neoclassical economic models of the late 19th century as it does to todays more flexible and inclusive...

This essay explores the possibility of modelling, within a framework of individual optimization, choice based on moral commitment. The basis is Sen’s (1977) classic article. The standard tool of utility maximization is replaced by Sen’s idea of a "ranking of action-rankings", to which I add...

The concept of a ‘well-ordered-society’ is central to Rawls’s theory of justice. In such a society, the agents are assumed to ‘comply with’ the principles of justice . This essay aims to clarify the notion of ‘compliance’ by using concepts from economic theory heretofore absent...

This paper offers an analysis of the optimality of unemployment benefits based on the concept of no-envy. Using a general equilibrium framework whit uncertainty, we derive the conditions for a trade-off between the intensity of envy and the expected percentage of envious persons. If the...

A reexamination of the Clower-Leijonhufvud approach to Keynesian theory is presented. Central elements are the lack of information available to atomistic economic agents in a decentralized environment, and the insistence on multi-period analysis. Such a reexamination is necessary to avoid the...

Many acts of sacrifice cannot be accounted for as instances of sophisticated selfishness, altruism, Kantian duty, or collusion of the powerful. Economists find these acts puzzling and seek to accomodate them within standard instrumental models of increasing complexity. The paper argues in favor...

In this paper, we challenge the usual argument which says that competition is a fair mechanism because it ranks individuals according to their relative preferences between effort and leisure. This argument, we claim, is very insuficient as a justification of fairness in competiton, and we show...

Wage and price formation are analysed in a general equilibrium model combining wage bargaining, monopolistic competition, stochastic demand, and technological constraints. The alternative implications of "efficient" and "right-to-manage" models of bargaining are studied. The price-cost margin is...

This paper investigates the standard economic paradigm as to the possibility for the agents to become revolutionaries, i.e., to develop the desire and effective action to overturn the prevailing social order. We take our cue from Amartya Sen’s remark that the Second Fundamental Theorem of...