User:Dirdene/sandbox

I would like to see these two paragraphs used to complete the final section on "The Relation to Neoclassical Economics." (Also, the font for this section's title seems to be inconsistent.)



It will be noted that Friedrich Hayek stated precise mathematical criteria for solution to the calculation problem:

The conditions which the solution of this optimum problem must satisfy have been fully worked out and can be stated best in mathematical form: put at their briefest, they are that the marginal rates of substitution between any two commodities or factors must be the same in all their different uses.[3]

And it will be further noted that equivalence among marginal rates of substitution is algebraically equivalent to the equation of marginal revenues with marginal costs that neoclassical economics posits as the object of economic activity.

Kurt Roemer has demonstrated that demonstrated[4] that specification of the shapes of economic sectors’ production and utility tradeoffs are sufficient references for emulating the economic system’s efficient generation of the optimal distribution of physical assets. This ‘SFEcon’ algorithm is distinguished for its internally-generated efficient prices. Prices are computed on the basis of nothing more than SFEcon’s physical and financial state variables together with its novel transcendental utility functions.

3. “The Use of Knowledge in Society.” American Economic Association: American Economic Review, XXXV, No. 4, 1945, pp. 519-30. http://www.econlib.org/library/Essays/hykKnw1.html

4. “Economic Calculation and SFEcon Model 0.” Proceedings of EcoMod Lisbon, 2016. http://ecomod.net/system/files/Roemer.Economic%20Calculation.pdf