Abstract

The economist Armen Alchian said once that ever since the fiasco in the Garden of Eden, we have been living in a world in which what we want exceeds what is available. The desire for more satisfaction is a predictable behavioral implication of the fact of scarcity. In fact, it might have helped mankind to survive against competition from other forms of life. Man's desire for more utility gives rise to two interdependent issues that each and every society has to face: how to increase the value of the community's wealth, and how to allocate the increment in wealth. We generalize those issues as the demand for economic development