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Paradox of thrift, 331Parametric function of relative prices,133–34, 134f, 135, 137Pareto efficiency, 4, 191, 425, 474Pareto optimality, 135, 137, 138,301–4, 302b–303bPart and whole. See Whole and partPatents: excludability and, 166; as excludableand nonrival goods,173–77; globalization and, 372–73;innovation and, 374; public goodsand scarcity, 182Per-capita GNP, 267Perpetual motion, 64–65Persistent organic pollutants (POPs),121Personal distribution, 305–6Petro-dollars, 396bPhillips curve, 340nPhotovoltaics, 90Pigou, A. C., 430Pigouvian subsidies, 431–32, 472Pigouvian taxes, 430–31, 474Plato, 309Plimsoll, Samuel, 5nPlimsoll line, 5Pluralism, 42–43Polanyi, Karl, 7, 37Policies for efficient allocation: macroallocation,464–67; pricing andvaluing nonmarket goods and services,457–64; redefining efficiency,474–76; sequencing, 417; spatial aspectsof nonmarket goods, 468–74Policies for just distribution: importanceand contentiousness of distribution,441–42; income and wealthcaps, 442–45; minimum income,445–47; returns to financial capital,distributing, 447–50; returns to naturalcapital, distributing, 451–55;sequencing, 417–19; sources vs.sinks, 422–23Policies for sustainable scale: cap andtrade, 433–38, 439–40; direct regulation,427–29, 439; Pigouvian subsidies,431–32; Pigouvian taxes,430–31; in practice, 439–40; sequencing,417–19; taxation vs. quotas,420–22, 421fPolicy: abiotic resources and, 91–92,91t; adaptive management, 416–17;distribution of public goods throughspace, 183–84; ends and means and,37; financial crisis and, 406–7; generalequilibrium model and, 264;globalization and national policies,389, 440; independent instrumentfor each goal, 414–15; initial conditionsand gradualism, 416; macrocontroland micro-variability, 415;macroeconomics and, 261; marginof error, 415–16; markets and, 413;presupposition of nondeterminismand nonnihilism, 42–43; price vs.quantity as variable, 420–22, 421f,423; principle of subsidiarity, 417;property rights and, 424–26; sequencingof, 417–19; sources vs.sinks, 422–23; throughput, controlling,420. See also Monetary and fiscalpolicyPollution, optimal levels of, 186f. Seealso Externalities; Policies for sustainablescale; Waste; Waste absorptioncapacityPolymers, 84Ponzi investors, 394, 399–400Population growth, human, 63, 112b,415Positivism, 303, 314–16Potential Pareto, 362, 474Poverty elimination, 445–46Power and wealth, 377b, 443bPreanalytic visions, 23–24Prefect information, 136nPresent value maximization model, 296Price: economic imperialism and, 51;fulcrum function of relative prices,133–34, 134f, 135, 137; multi-tierpricing, 177; of nature and life,459b; of nonmarket goods and services,457–64; rationing and allocativefunctions of, 151b; scarcity and,202–4; taxes as policy variable,420–22, 421f, 423. See also Marketequation, basicPrice elasticity, 153–56, 154f, 155fPrice level index, 294“Price theory,” 265Principle of subsidiarity, 417, 468Principle of substitution, 144Priority, 42, 50Prisoner’s dilemma, 245–46Private property, 422–23, 425–26Privatization, 450nProcedural utility, 239–40Production function, 156–61, 157fProductivity method, 461bProfit maximization: market failureand, 214–21, 215f, 216b–217b;well-being and, 448Progressive taxes, 444–45Property rights: government protectionof, 9n; hunter-gatherers and, 8–9;policy and, 424–26, 430; quotasand, 434. See also ExcludabilityProperty rule, 425, 435, 462Prosocial behavior, 251–52Protectionism, 218Psychological rates of substitution, 133,135Psychology and economics, 319bPublic bads, 194, 226–27, 432, 465Public-good game, 247Public goods: free-rider effect, 179b,180, 246; market failure and,177–84; money, 293–95; nationaldefense, 342n; sky trust and, 453Public Law 480 (U.S.), 387bPuckett, B. Earl, 465Purchasing power, 267, 384Pure economic profit, 225–26Pure time rate of preference (PTRP),315, 318–19QQuality of life (QOL), 278, 406. Seealso Welfare, humanQuantity of money theory of income,322bQuotas, 420–22, 421f, 423, 433–35RRace to the bottom, 376Rand, Ayn, xxiiRationality, 233, 241–44, 407Rational self-interest. See Self-interestRationing function of price, 151bReagan, Ronald, 339, 377bReal sector (IS), 323–26Recycling: of energy, 31–32, 39; ofminerals, 84, 200–201Reductionism, ecological, 51f, 54–55Reflexivity, 394nRegulation of the financial sector, 407Regulatory policy. See Entries at policiesRelative income, 238Relativism, 44–47Renewable resources: catch-per-unit-efforthypothesis, 212–14, 213f; defined,75–76; ecosystem servicesand optimal harvest, 222–26, 223f,225f; intergenerational distributionand, 314; limits, 118–19; as material