ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Responses to Ozone Depletion

pure stock-equilibrium two-sector, non- steady state, continuous-time version of the von Neumann 1946 economy. The production functions in this model are of the form of "specific-factors, single-technique Leontief technology" exhibiting a simple form of the Uzawa factor-intensity assumption. Von Neumann II and III relax the basic-only assumption of the earlier model and treats output as perishable instantaneously. Whereas in the earlier model consumer preference plays no role in price determination, now with output as non-basics, the point-in-time equilibrium price could be determined by Walrasian flow equilibrium. Also since output cannot be stored, there is no role for speculative activity. TheRicardo- Bortkiewicz-Sraffa theorem that seems to be at odds with general-equilibrium thinking is proved to be valid. Von Neumann HI is an endogenous specification of Von Neumann II as it introduces a technology that transforms non-basics to basics. The Marx-Sraffa model introduces labour as a resource reproducible endogenously within the system keeping in line with the classical perspective. The Hamiltonian system is then shown to demonstrate Marx's falling rate of profit and Sraffa's inverse relationship between wage share and profit rate. The chapter on Arrow-Debreu model shows how itis isomorphic with the author' s Hamiltonian system. In its attempt to show that, the chapter provides very rich insights into the entire developments in capital theory. The section on "Primary resources" deals with the following models. Ricardo is a two- sector model and introduces land as a primary non-reproducible resource, a basic good, i e, the corn, and a non-basic Ricardian luxury. The model is shown to possess many properties, an interesting one being its similarity in structure with Pasinetti's two- sector Ricardian economy, although it differs from his through the incorporation of a stock market in land and is consistent with intertemporal consumption optimisation. The Ramsey-Solow-Uzawa model establishes its structural identity with the Ricardian model. It is the author's position that non- reproducible neo-classical labour mimics Ricardian land as an input. A corresponding stock market in labour is said to exist if ownership claims to human capital are alienable in the stock market in the absence of prohibitions against voluntary slavery. While the Ramsey-Solow model is one- sector, the Uzawa model is a two-sector adaptation of the earlier models of Uzawa and Srinivasan. Although neo-classical, the model obeys both the Ricardo-Bortkiewicz- Sraffa theorem as well as the Samuel son non-substitution theorem. When a Leontief technology i s introduced, the Uzawa-Leontief structure, its dynamic features are similar to the Ricardo Leontief model. The doctrinal circle of production models is closed by including one or several non-reproducible inputs in the Von Neumann I model, called here Walras and Capital. Walras I has two basics and a single non-produced resource. The model obeys the Samuelson non- substitution theorem in the long run. The temporary movement of prices is for reasons other than the Walrasian market-clearing argument, namely, to stock market disequilibria. Walras II deals with multiple basics and multiple primary resources. Given the multiple long-run scarcities in the economy, a long-run equilibrium is possible only if the growth rates of the primary resources coincide. Also the non-substitution theorem is not valid. An interesting supplement convincingly argues a flaw in Walras's capital theory, in Walras and Exchange the author argues his case as to why the reasons generally adduced for assumptions of "perfect factor mobility" may not be valid. His stock market approach enables him to counter the usual arguments that resource transfers are intractable of representation in general equilibrium models. Walras III presents a model in which primary inputs are intersectorally moveable over time via an investment process. Its limiting cases THE stratospher, which surrounds the earth at a height of 25 kms, is rich in ozone. Ozone prevents the reaching of sun's ultra violet rays (UV-B) to the earth. UV-B can adversely affect all life on earth, including marine life, plants, birds and of course humans. In 1974 Rowland and Molina put forward a hypothesis that chlorinated compounds could persist in the atmosphere long enough to reach the stratosphere and could result in destruction of ozone. This was proved by subsequent research, and the discovery of the Antarctic ozone hole in 1985 led the nations to come to an agreement on controlling chlorofluorocarbons (CFCs) and other ozone- destroying substance(s) (ODS). In 1987 the Montreal protocol on substances that deplete the ozone layer was signed. This protocol is perhaps the first international agreement which was widely accepted by almost all nations. As a result of the protocol, the consumption of CFCs, halons, methyl chloroforms and carbon tetrachloride had been dramatically reduced and thedeveloping are perfect factor mobility and resource immovability. The latter case collapses into Walras IV which is the Walrasian model of pure exchange. It is the author's conviction that Walras's model of pure exchange in focusing exclusively on the terms at which agents are willing to trade endowments, fails to enquire into the conditions under which agents are willing to hold the ownership claims attached to the sources of these endowments. His stock market approach enables him to do that.

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