Index

accumulation 30, 82–4, 89–90, 93, Buddhism 61 100–103, 105–6, 108–10, 113, Buddhist 10–11 117–21, 123, 155 Afriat, S. 135 Cagan, Phillip 111 anger 20, 23–4, 82, 113, 142, 150 Cambridge Aquinas, St Thomas 17, 64, 69–70 Controversy 113–14, 154 Archimedean 129, 131 equation 119 Aristippus (of Cyrene) 19 model 119–20 Aristotle 12, 16–18, 20, 25, 27–32, 60, Cantril, Hadley 16, 124, 142 64, 70, 88 capitalism 36, 38–9, 44–6, 73, 81, 90, Arrow, Kenneth 102–3, 107, 109, 159–60 Arrow–Debreu model 17, 45, 111, capitalist investment function 104–5 115 Christian 1, 10, 56, 58–62, 88 Arrow–Pratt measure of risk- command economies 45 aversion 6 commend system 82 impossibility theorem 38, 158, communism 44–5, 81, 83, 107, 109 172–8, 180–81, 184 Cynics 16, 18–20, 25 welfare function 173–5, 181 Cyrenaics 12, 18–19 The Art of Happiness (Dalai Lama and Cutler) 10–11 Dasein 65–6 Augustine, St 17, 68–70 Davidson, Paul 111 Aumann, Robert 9 de Condorcet, Marquis 154–5, 174, 181 Aurelius, Marcus 22 Deaton, Angus 16, 124–5, 148–50 delight 14, 20, 40, 54, 71 Backhouse, Roger E. 119–21 demand theory 137 Barro, Robert 112, 149 Democritus 20–21, 24, 26, 101 beings 10, 12, 14, 61–6 deRosset, L. 47–8 benevolence 14, 25, 88 Descartes, René 64, 67 Bentham, Jeremy 4, 8, 17, 31–5, 37, 42, Diogenes 19–21, 25 52, 73, 75, 123, 126–7, 144, 152–3, distributive justice 36 155, 160, 169–70 Dobb, Maurice 7, 75, 119, 154, 162, Bergson welfare function 2, 158–60, 164, 169 169–70, 173, 181 Duesenberry, James 3–4, 145 Bernoulli, Daniel 6, 125–7, 139 dynamic standard commodity (SC) 96 bias 139–41, 143 Blinder, Alan 148 Easterlin, Richard 16, 124, 145–8 Bliss, C. 120 Economic and Monetary Union Bohm-Bawerk, Eugene von 19, 77, (EMU) 7 160 Edgeworth, Francis 7, 75, 153, 160, Borda, J.C. 154, 181 163, 166, 168 Buddha 180 effective demand 83, 100–101

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Eichengreen, Barry 114 Hedonist school 19 endowment effect 142 hedonism 18–19, 34, 121, 152 Engels, Frederic 21, 79–81, 84, 87, 102 Heidegger, Martin 17, 61, 63–7 Epictetus 22, 25, 53, 88 Heraclitus 13, 26–7 Epicurean 12, 16, 18, 20–21 Herstein, I.N. 129–30 Epicurus 18, 20–21, 25, 33, 60, 102 heuristic 141–3 equilibrium 5, 7, 17, 20, 45, 78–9, 84, anchoring 141–2 88–9, 93–4, 96, 102, 107, 111–12, availability 141–2 115, 121, 138, 148, 160, 162, representativeness 141 168–9, 171 Hicks, Sir John 2, 5, 91, 94, 111, 121–2, Erasmus of Rotterdam 1 136–8, 158–9, 162–7, 171–2 expected money value (EMV) 6 Hintika, Jaakko 50 extended reproduction 106 Hobbes, Thomas 177, 181 Hobhouse, L.T. 4, 155–7 faith 55, 57–61, 65, 70–71 humanism 1, 20 feudalism 45, 102 humanist 1 Fine, Kit 46, 48–9 Hume, David 13, 17, 31, 151 Fisher, Irving 19, 75, 106, 164–5 Fitch, Frederick 50 index number 162–4, 166–7 Fitch, Gregory W. 40 Frank, Robert 3 Jeffrey, Richard 42–3 free trade 7, 46, 87, 161 Jevons, W. Stanley 17, 75–6, 78–9, 126 Frege, Gottlob 67 Johnson, Samuel 10 Freud, Sigmund 9, 60, 73 Friedman, Milton 3, 30, 37–8, 78, 148 Kahneman, Daniel 16, 139–44, 148–50 Friedman, Rose 38 Kaldor, Nicholas 2, 158–9, 161–7, 172 Fundamental Marxian Theorem Kant, Immanuel 12, 37, 46, 52–3, 55, (FMT) 106–9 64, 79, 156 Keynes, John Maynard Galbraith, Kenneth 1–2, 115 consumption function 3–4 Gallup poll 16, 124, 131, 142, 148 short-run model 3, 109 generalized axiom of revealed Keynesian 3, 10, 38, 44–5, 47–9, 96, preference (GARP) 135–7 101, 109, 111, 113–15 Gettier, Edmund 33–4 Kierkegaard, Soren 55–9, 64–5 Gibbard–Satterthwaite theorem 175 Kripke, Saul 43 good society 1–2 Goodman, Nelson 42 Latin America 7 Gramlich, Edward M. 111–12 Layard, Richard 144–5 Great Depression 47, 109–10 Leibniz, Gottfried Wilhelm 14, 39–40, Great Recession 47 42 Greek 1, 15–18, 22, 26, 29, 31, 51, 60, Leontief, Wassily 107–8 62, 67 Lewis, David 50–53 gross domestic product (GDP) 2–3, Leyden approach 182–4 115, 144 libertarian 1, 159 gross national product (GNP) 110, 168 libertarian school of economics 1 grounding 46–9 lifecycle hypothesis (LCH) 3 literature 10, 15, 35, 39, 42–3, 51, 67, Hall, Robert 4, 149 81, 91, 108, 116, 119, 124–5, 133, Hausman, Daniel 150–52 159, 165, 175, 180 Hayek, Frederick 14, 135, 159 Little, Daniel 102, 158–9, 181

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love 4, 11, 13–14, 24, 39–40, 55–6, Pasinetti, Luigi 93, 96, 100, 110–11, 58–9, 62, 68–9, 71, 88, 157 117, 119 Lucas, Robert 4, 149 permanent income hypothesis (PIH) Luther, Martin 1 3, 148–9 philosophical 13, 15, 28, 51, 68, 150, Maine, Sir Henry 81 180 Malthus, Thomas 2, 93, 95, 100–101, physiocrats 84–7, 90–91 119 Pigou, Arthur Cecil 3, 121–3, 153, 160, marginal propensity to consume 170–71, 179 (MPC) 3, 101, 105, 110 Piketty, Thomas 114 marginal revolution 17, 75, 126 Plantinga, Alvin 40–41 Marshall, Alfred 44, 89, 106, 121, 127, Plato 12–13, 16–20, 25–8, 32–3, 51, 60, 153, 160, 170 64, 69, 88 Marx, Karl 2, 21, 60, 73–4, 79–85, 87, political 15, 28, 61, 81, 87, 122–3, 155, 90, 101–8, 110, 126 169, 179–80 Marxian 38, 45, 106, 108–9 Polk, Richard 66 maximum ophelimity 161 post-Keynesian 46, 110–14 McNaughton, Robert 8–9, 32 preferences 5, 8, 16, 30, 32, 78, 128, Meek, Ronald 82, 90–91, 102 132, 135–6, 139, 145, 151, 154, Menger, Carl 17, 75–7, 126 164, 168–9, 172–6, 178 mental conception 103 primitive mercantilism 83–4 accumulation 82–3 Mill, J.S. 32–7, 52, 123, 152, 156, 161 communism 81, 83 Milnor, John 129, 130 happiness 79 modal realism 49 society 45, 80–81 modern monetary theory (MMT) principal principle (PP) 50–53 114–16 production function 48, 84, 117–18 modes of production 80, 102 prospect theory 139–43 Modigliani, Franco 3, 30, 110, 148 Protagoras 17–18, 26, 33 Moore, G.E. 9, 35, 167 psychological 3, 16, 31, 34, 63, 73, 89, Morgan, L.H. 80–81 100, 105, 122, 124, 138, 147–8, 182 Morgenstern, Oskar 5–7, 16, 126, Pythagoras 26 128–9, 182 Muller–Satterthwaite theorem 175 quality of life 3, 13–14 music 26, 53–4 Quesnay, Francis 84–7 Muth, John 4 Ramsey, Frank 9–10, 42, 116–18 naturalism 102 rational expectation 4, 112–13, 138, neoclassical 2, 38, 45–6, 77, 79, 102, 149 112, 160, 168, 181 Rawls, John 30, 35–6, 170, 177 New Classical 112 relative income hypothesis (RIH) 3–4, new paradox of happiness (NPH) 50 145 Nietzsche, Friedrich 18, 60–64, 79, 143 Renaissance 1 Nikolsky, Boris 20, 27 revealed preference 15, 131–5, 137–8, 151, 167 Old Testament 17, 53 Ricardo, David 2, 74–5, 79, 87, 90–96, 98, 100–101, 105, 122, 126 Pareto, Vilfredo 2, 5, 7, 15, 158–9, 161, Rieu, Dong-Min 107–8 163, 166–7, 169, 172, 175–6, 178 rigidities (price and wage) 113 Parmenides 13 risk 6, 114, 139, 182–3

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Robinson, Joan 45, 118–21 Sophist 12, 16–19, 26 Robinsonian economy 74 Sraffa, Piero 85, 96–9 Romer, John E. 107–8 St Petersburg paradox 6, 125, 139 Rousseau, Jean-Jacques 16, 79, 107, stagflation 47, 111–12 153, 156, 181 Stalnaker, Robert 41–2 Rowthorn, Robert 113, 115–16 standard commodity (SC) 96 Ruml, B. 116 Steedman, Ian 121–3, 144–5 Russell, Bertrand 13, 21, 25, 32, 67, 80 Stephen, Lesley 155 Stoic 16, 18, 21–5, 27, 39, 88, 90 Salerno, Joe 49–50 strong axiom of revealed preference Samuelson, Paul 2, 4, 16, 86, 89, 91, (SARP) 134–7 93–4, 105–6, 110–12, 117, 127, subsistence 80–82, 87, 93, 95, 97, 129, 131–5, 138, 158–62, 164, 99–100, 102, 107, 118 166–7, 169–70, 172, 181 survey 16, 124–5, 131, 144, 147–8, Sargent, Tomas 112 182 Savage, Leonard 42–3, 74, 79–80, 129 System 1 140–41, 143 scarcity 77, 82 System 2 140, 143 Schopenhauer, Arthur 19, 53–4, 64, 79, 143 technology 10, 64, 85, 89, 100, 103, Schor, Juliet 4 106, 109–10, 113 Scitovsky, T. 138, 158, 163–7, 172 Thompson, William 123 self-interest system 2 total revealed preference theory Sen, Amartya 2, 13–15, 154, 172, (TRPT) 135 176–81 Trever, A.A. 25–6 Seneca, Lucius Annaeus 22–4 set theory 22 utilitarian 14, 17, 21, 31–3, 35, 52, Sidwick, Henry 35, 152, 160 63–4, 121, 123, 139, 153, 178 simple reproduction 102–5 utility 2, 4–8, 13–17, 31, 33–4, 36, 42, simple surplus 97, 99 45–6, 48, 74–9, 116–17, 121, 123, Singer, M.G. 33 125–31, 133, 136, 138–9, 142–3, slave society/societies 45 145–7, 153–4, 158, 160, 162, 164, Smith, Adam 17, 19–21, 25, 31, 34, 166–70, 173, 177, 179, 181–4 36, 38, 45, 55–6, 73–4, 79, 82–3, cardinal 4–5, 31, 74–5, 126, 128 87–91, 98–9, 102, 105, 126–7, 140, diminishing marginal (DMU) 48, 155, 171, 177, 179, 181 126 spectator principle 88–90 maximization 6, 76, 78, 121–2, 146 water–diamond paradox 74, 127 ordinal 5, 31, 74–5, 126, 128, 131, The Wealth of Nations 31, 89, 90, 146 171 Socrates 8, 12, 16–20, 26–7, 33 Varian, H.R. 134–5, 171 social Veenhoven, R. 147 equity 2 von Mises, Ludwig 1 happiness 2, 74, 82, 123, 174, 177 von Neumann, John 5–7, 16, 126, justice 14 128–9, 182 relation 16, 83, 102–3, 144–5, 153–6 reproduction 102 Wagner, Richard 54 welfare function (SWF) 166–73, 175, Walras, Leon 78–9, 97, 111, 180 178, 181 weak axiom of revealed preference socialism 39, 45, 81, 109, 159 (WARP) 132–3, 135, 137, 167 Solow, Robert 110, 112 Weber–Fechner law 127, 139

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welfare 1–3, 7, 14, 16, 47, 122, 138, Wicksteed, Phillip 121–2 144, 148, 150–55, 157–61, 163, Wilson’s theorem 175 165–73, 175, 177, 179, 180–83 Wittgenstein, Ludwig 13, 36, 67–8 Werlang, Sérgio Ribeiro da Costa 9 Wicksell, Knut 48, 77, 79, 118, 160 Zeno 18, 21–2

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