Lessons from Science: Need for a Rethink of Concepts in Economics

Economic and Political Weekly, Forthcoming

Lee Kuan Yew School of Public Policy Research Paper No. 14-30

Posted: 6 Sep 2014 Last revised: 16 Oct 2014

See all articles by Dodo Jesuthason Thampapillai

Dodo Jesuthason Thampapillai

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy

Date Written: August 5, 2014

Abstract

The recognition of two important concepts in science, namely the assimilative capacity of nature (resilience) and the entropy of law of thermodynamics enables the formulation of an alternative framework for factor-utilization in economics. This framework, which explicitly includes environmental capital (KN) as a factor, enables the illustration of the entropy law being the driver of diminishing marginal returns and the limited ranges of substitutability between factors. Such revisions have profound implications for policy formulation. Stabilizing KN becomes an important instrument of policy at all levels.

Keywords: Entropy, Resilience, Production

JEL Classification: Q50

Suggested Citation

Thampapillai, Dodo Jesuthason, Lessons from Science: Need for a Rethink of Concepts in Economics (August 5, 2014). Economic and Political Weekly, Forthcoming; Lee Kuan Yew School of Public Policy Research Paper No. 14-30. Available at SSRN: https://ssrn.com/abstract=2492057

Dodo Jesuthason Thampapillai (Contact Author)

National University of Singapore (NUS) - Lee Kuan Yew School of Public Policy ( email )

Singapore 117591
Singapore
+6565164844 (Phone)

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