"To defend the truth, to articulate it with humility and conviction, and to bear witness to it in life are therefore exacting and indispensable forms of charity."

H. H. Benedict XVI. Caritas in Veritate Encyclical. June 29, 2009

Sunday, August 26, 2012

On the production function

Technology is the known recipes to produce output out of inputs. A production function is a relation between quantities of output and respective quantities of inputs required to produce such quantities given the technology.

With perfect knowledge about the list of inputs, the only logical conclusion is that there can be no more that constant returns to scale. With constant returns to scale there cannot be increasing marginal returns.

So, the apparent phenomena of non-constant returns to scale and increasing marginal returns are logically due exclusively to ignorance about the list of inputs required to produce.

Sunday, August 19, 2012

Kinds of returns to scale: constant. That's all.

Forget about maths disentangled of economic theory. Even if you can have a mathematical function of degree different than zero, in economics there are just constant returns to scale. If you have the appearance of decreasing returns to scale, that's because an input remains fixed after all. The same is true in the case of apparent increasing returns to scale, save by the fact that in this second case, production is still in the stage of increasing marginal returns.

Wednesday, August 15, 2012

Lie sold as truth

Some "economists" (lobbyists in scientific disguise) dedicate their work not to clarify truth but to elaborate lie so that, through unnecessary complication of explanations, it becomes harder to understand the phenomenon in consideration on the one hand, and lie acquires the venerable appearance of truth on the other.

Saturday, August 4, 2012

Respect for the public authority

Holding the hand of the public authority in your own hands and then kissing it... The whole idea is avoiding that he can move it.