Carbon Tax

[Bob Jane T-Mart]

What are the fundamental premises that are unfalsifiable? Just curious.

I believe the principle of comparative advantage is unfalsifiable. And so is the assumption that people act to maximise their happiness, if I'm right.

Eschemat: It really depends on a number of factors, including the price of renewables. I think at the moment the answer is probably no, however, the renewal energy subsidies and investments in renewable energy should make it cheaper than before and rectify this issue.

 

[1048576]

comparative advantage is just math. http://en.wikipedia.org/wiki/Comparative_advantage There's no hypothesis or theory behind it.

The second thing is just rhetoric. I'm pretty sure if we were to debate the definition of happiness as it relates to economics, that statement would end up being a tautology. Regardless, that's so far up the ladder from which everything follows it's almost metaphysical. It's like hating on math because we haven't proven a + b = b + a*

*I may be showing my ignorance, but I think the point is clear.

 

[blazedaces]

comparative advantage is just math. http://en.wikipedia.org/wiki/Comparative_advantage There's no hypothesis or theory behind it.

The second thing is just rhetoric. I'm pretty sure if we were to debate the definition of happiness as it relates to economics, that statement would end up being a tautology. Regardless, that's so far up the ladder from which everything follows it's almost metaphysical. It's like hating on math because we haven't proven a + b = b + a*

*I may be showing my ignorance, but I think the point is clear.

While I'm not disagreeing with your previous statement, I don't think the example entirely applies because of course the communicative law of addition is indeed provable: http://mathforum.org/library/drmath/view/51563.html

There are certain assumptions in mathematics that we can not prove of course, such as a = a... but this claim is also so trivial we take it as self-evident. I'm sure some people don't like that idea... but whatever.

-blazed

 

[1048576]

I had a hunch. Anyway there are math axioms slightly more complex than a=a.

http://en.wikipedia.org/wiki/Euclid's_postulates#Axioms

 

[ballin4life]

I believe the principle of comparative advantage is unfalsifiable. And so is the assumption that people act to maximise their happiness, if I'm right.

I'd say people maximize their happiness by definition. I don't think other definitions of happiness make sense.

Although it is true that there are lots of economic models that make unrealistic assumptions. These don't (usually) claim to be the end-all truth of the universe.

Anyway, comparative advantage seems to me to be a result, not an assumption. It's justified both theoretically and empirically too.

I had a hunch. Anyway there are math axioms slightly more complex than a=a.

http://en.wikipedia.org/wiki/Euclid's_postulates#Axioms

Euclid? What is this, 1850?

http://en.wikipedia.org/wiki/ZFC#The_axioms