经济代写|Microeconomics代考微观经济学代写|ECON201

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• Statistical Inference 统计推断
• Statistical Computing 统计计算
• (Generalized) Linear Models 广义线性模型
• Statistical Machine Learning 统计机器学习
• Longitudinal Data Analysis 纵向数据分析
• Foundations of Data Science 数据科学基础

经济代写|Economics代考微观经济学代写|A Very Brief Historical Introduction

The present chapter introduces to the views on value and income distribution of the classical or surplus approach, whose main representatives were Adam Smith, David Ricardo and Karl Marx. This approach is enjoying a considerable revival, and familiarity with it can help to realize that the dominant marginal/neoclassical approach is not the only possible way to conceive the working of market economies. The presentation adopts a historical-analytical approach, proceeding from Smith to Ricardo and to Marx, illustrating the needed notions when the theories of the author demand them. In this way the reader grasps the historical evolution of the approach and understands in particular the difficulties the three authors met in explaining the rate of profit. Those difficulties appear surmountable; however, the chapter finds the theories of classical authors on what determines quantities produced and employment not very satisfactory and concludes by noting the possibility to integrate the classical approach with a Keynesian determination of aggregate output (and employment) based on aggregate demand and the multiplier. In an online Appendix to the chapter, in the book’s Website, you will find Ricardo’s very interesting views on the possibility that technical progress increases unemployment and the essentials of national accounting for readers new to economics.

Microeconomics is the branch of economic theory where, from the study of the decisions of individuals and of their effects, one tries to answer the question: what is produced, how and for whom in a private-property economy. Historically, this set of connected questions used to be studied under a different name: ‘theory of value and of income distribution’. The theory of value narrowly understood studies what determines the normal relative prices (or values) of the gonds produred in a market economy; hut from the inception of economic theory as a systematic enquiry, it was found that this study is intimately connected with the study of what determines wages, land rents, profits, interest, in other words, income distribution; hence an impossibility to separate the study of value from the study of income distribution. The latter study was found necessarily to involve also the study of the forces determining the quantities produced, and the overall utilization of resources, topics more often classified nowadays as part of macroeconomics; but the separation between microeconomics and macroeconomics cannot be rigid and actually needs a radical reconsideration (see this book’s Preface).

In the history of economic analysis it is possible, albeit at the cost of drastic simplification, to distinguish two main successive approaches to the theory of value and distribution.

经济代写|Economics代考微观经济学代写|Social Surplus and Income Distribution

The surplus approach progressed considerably from the Physiocrats to Karl Marx. With hindsight, we can discern a common analytical structure in the analyses of classical economists. All these authors concentrate first of all on the conditions that must be satisfied in order for the productive processes of the economy to be repeatable on the same scale period after period. To such an end, they distinguish the ensemble of the goods produced in an economy in a year in two parts:
(a) total necessary consumption, i.e. the part that must be employed again in the productive process in order to repeat it; in this part they include both the replacement of all means of production consumed in the productive process, and the necessary consumption, or subsistence, of the workers employed ${ }^{3}$;
(b) the remainder, which we can call ‘social surplus’, whose value corresponds to the net income of the social classes other than the workers 4 ; this surplus can be employed by society as it likes, without impairing the continuation of productive activity on at least the same scale.

The centrality of the notion of surplus and its connection with the theory of income distribution derives in the classical authors from their interest in the causes, and in the ways to increase, the ‘wealth of nations’. The utilization of the surplus determines the evolution of the economy; and this utilization is seen as essentially depending on how the surplus gets distributed among the different social classes. Ricardo, for example, sees the surplus as constituting the income of capitalists and of landlords and is in favour of giving as great as possible a portion of the surplus to the capitalists rather than to the landlords, because according to him the capitalists reinvest the greater part of their income, thus favouring the growth of production, while the landlords consume their income in luxuries.

Let us grasp some of the central aspects of the classical approach via description of a simple economy, where the sole product is corn, ${ }^{5}$ produced in yearly cycles by labour and corn (used as seed and as food for the labourers) over lands of different, or even of uniform, quality. Suppose that in a certain year 1000 tons of corn are produced by 1000 labourers who in the process have consumed 300 tons as seed and 500 tons as subsistence. Then the net physical product of that year (total product minus produced means of production used up as inputs ${ }^{6}$ ) is $1000-$ $300=700$; the surplus product is the net product minus the labourers’ subsistence, $700-500=200$. The total necessary consumption has been $300+500=800$ tons.

经济代写|Economics代考微观经济学代写|Social Surplus and Income Distribution

(a) 总必要消费，即必须在生产过程中再次使用以重复生产的部分；在这一部分中，它们既包括生产过程中消耗的所有生产资料的更换，也包括雇佣工人的必要消费或生活资料。3;
(b) 剩余部分，我们可以称之为“社会剩余”，其价值对应于工人以外社会阶层的净收入 4 ；社会可以随意使用这种盈余，而不会损害至少同等规模的生产活动的持续性。

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MATLAB代写

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