Friday, December 5, 2008

The McKenzie Lecture, II - Inside Rochester

A couple of pictures were taken at the aforementioned lecture given by Lionel McKenzie. I thought this one was particularly good; that's also my shoulder at the centre-right. Click to expand.

Another tidbit from his talk that I recall. The idea of 'free disposal' is that it's costless for firms to throw away extra output if they can't sell it. It hadn't occured to me but seems obvious in retrospect this doesn't hold. Pollution or "noxious goods", to use his language, are not something that can be disposed of at whim. Flipping through my general equilibrium notes, it's suddenly hard not to wonder how easy it would be to create more palatable assumptions to reprove some of these theorems.

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