Academic excerpt on economic theory with no identifiable actors or misconduct

which must have seemed hopelessly stuck in subjectivity, paid off finally in that solution and in a refutation of Piketty’s argument. Risk theory and depreciation theory, each surprising enough, reinforced that solution and the pay rule. I said nothing in the this chapter about bank reform because I covered that in Chapter 1. Predictions of behavior can work because tastes converge to market equilibria. What stands behind the convergence, | argue, is biology selecting tastes that maintain and reproduce us. The idea that we act out the biological imperative is clear in Petty and Malthus, and in the equilibrium wage theory of Adam Smith and David Ricardo, where pay converges to the level preserving the work force. But if] say everything about that now, | will have nothing to say later. Chapter 2: Fast Forward 1/06/16 31 HOUSE_OVERSIGHT_010971