Psychology Dictionary of ArgumentsHome
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| Allocation: Allocation in economics refers to the distribution of resources, goods, or services in an economy, often influenced by market mechanisms, government policies, or other factors. It addresses how scarce resources are assigned to meet various needs and wants._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Murray N. Rothbard on Allocation - Dictionary of Arguments
Rothbard III 218 Allocation/Rothbard: (…) man allocates his time between leisure and productive labor, between labor for money and labor on unexchangeable items, etc., in accordance with the principle of maximizing his psychic income. In deciding between labor and leisure, he weighs the marginal advantages of work with the marginal advantages of leisure. >Inalienability, >Labour, >Action/Rothbard, >Marginal utility. Similarly, man as a prospective investor must weigh, not only the advantages and disadvantages, monetary and otherwise, from each prospective investment, but also whether or not to invest at all. Every man must allocate his money resources in three and only three ways: in consumption spending, in investment expenditure, and in addition to his cash balance. Shall he invest at all, or shall he buy consumers’ goods now, or add to his cash balance? The marginal advantage of making the investment will be the prospective money return, weighted by the nonexchangeable utilities or disutilities involved. The advantage of a money return will be that he will have more money, in the future, that he could spend on consumers’ goods. >Time preference, >Stock keeping/Rothbard. Rothbard III 219 Every man will allocate his money resources on the same principles that the hypothetical actor allocated his stock of [goods] (…); each unit will be used for the most useful end not yet achieved. It is in accordance with these principles - the maximizing of his psychic income - that each man will allocate his money stock. In accordance with his value scale, each man will judge the respective marginal utilities to be obtained by each monetary unit in each use, and his allocation of money expenditures as revealed in his balance of payments will be determined by such judgments. Rothbard III 220 Marginal utility: On what principles does a man allocate his expenditures among the numerous types of consumers’ goods available? His first unit of money spent on consumers’ goods will be spent on that good satisfying the most highly valued end, the next unit on the next most highly valued end, etc. Rothbard III 221 What principles will decide whether a prospective investor uses his labor in his own investment in production (i.e., will be “self-employed”) or will invest only his money and sell his labor elsewhere as an employee? (…) the principle again will be the best psychic advantage from the action. Rothbard III 222 Work/labor: (…) the common concept of the productive laborer, limited to the man who works in the fields or on an assembly line, is completely fallacious. Laborers are all those who expend their labor in the productive process. This labor is expended for a money income (which may be weighted by other psychic factors). If the labor service is sold to an investing employer who owns the final good produced by the co-operating factors, it might be rendered in any required task (…)._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Rothbard II Murray N. Rothbard Classical Economics. An Austrian Perspective on the History of Economic Thought. Cheltenham, UK: Edward Elgar Publishing. Cheltenham 1995 Rothbard III Murray N. Rothbard Man, Economy and State with Power and Market. Study Edition Auburn, Alabama 1962, 1970, 2009 Rothbard IV Murray N. Rothbard The Essential von Mises Auburn, Alabama 1988 Rothbard V Murray N. Rothbard Power and Market: Government and the Economy Kansas City 1977 |
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