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I think Humberto is right to point to the different way efficiency is used
in engineering. I don't think the crucial difference is the one he
highlights, though. Engineers want optimality, too, but they want the
maximum *physical* output from given inputs. Economists want the maximum
*utility* output from the inputs. With this change, I don't see much
difference. The First Welfare Theorem says that any reallocation of an
input will reduce the output of utility. A reallocation may well reduce
energy usage, or raise the number of tons of GDP produced, or some such.
We don't care! Engineers ignore values.
Kevin Quinn
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