Class 5: Transformative science and learning Funtowicz , S.O., Ravetz , J.R., 1994. The worth of a songbird: ecological economics as a post-normal science. Ecological Economics 10, 197–207. https://doi.org/10.1016/0921-8009(94)90108-2 Ecological economics embraces post normal science, that instead of reduce uncertainties or seek for truth, aims to be useful at providing tentative answers to important questions. The article challenges economists obsession to deal with questions of evaluation by reducing the question to one number. It provides additional qualitative metrics to evaluate uncertainty, and leverages and article of the recent Nobel price Nordhaus to show the poor usage of meaningless numerical accuracy with a model full of assumptions, tweaks and tricks to give plausible numbers. Quality is assessed by the robustness of a policy given the observed amount of uncertainty. Nordhaus makes policy recommendations that shows an excessive confidence on his poor model, basical
Dasgupta, P 2007: Markets: A very short introduction Dasgupta describes efficiency in ideal markets in terms of Pareto, meaning that is not possible to make the bundle different without making at least one agent worse off. This theoretical foundation is at the core of the defence of 'free' global trade. Pareto efficiency says little about the justice or fairness of such endowments resulting from the market transactions. There are possible allocations that are either egalitarian and Pareto efficient and one but not the other. There are multiple cases where markets do not function well, such as public goods, externalities, imperfect information of the good or service quality and monopolies. In is often argue that monopolies are an acceptable evil as its profits are a driver for innovation as well as its scale can led to lower unit cost, when economies of scale are present. Mainstream theories struggle to explain crises and stagnation, as well as different levels of unemployment.