Geometrical exposition of structural axiomatic economics (I): Fundamentals

Kakarot-Handtke, Egmont (2012): Geometrical exposition of structural axiomatic economics (I): Fundamentals.

Abstract

Behavioral assumptions are not solid enough to be eligible as first principles of theoretical economics. Hence all endeavors to lay the formal foundation on a new site and at a deeper level actually need no further vindication. Part (I) of the structural axiomatic analysis submits three nonbehavioral axioms as groundwork and applies them to the simplest possible case of the pure consumption economy. The geometrical analysis makes the interrelations between income, profit and employment under the conditions of market clearing and budget balancing immediately evident. Part (II) applies the differentiated axiom set to the analysis of qualitative and temporal aggregation.

• Item Type: MPRA Paper
• Language: English
• Keywords: new framework of concepts; structure-centric; axiom set; supersymmetry; general equilibrium; dimensionless variables; income; profit; distributed profit; retained profit; full employment; money; credit; Say’s Law
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; D - Microeconomics > D0 - General > D00 - General

References

Arrow, K. J., and Hahn, F. H. (1991). General Competive Analysis. Amsterdam, New York, NY, etc.: North-Holland.

Baumol, W. J. (1977). Say’s (at Least) Eight Laws, or What Say and James Mill May Really Have Meant. Economica, 44(174): 145–161. URL http://www.jstor. org/stable/2553717.

Boylan, T. A., and O’Gorman, P. F. (1995). Beyond Rhetoric and Realism in Economics. Towards a Reformulation of Economic Methodology. London: Routledge.

Desai, M. (2008). Profit and Profit Theory. In S. N. Durlauf, and L. E. Blume (Eds.), The New Palgrave Dictionary of Economics Online, pages 1–11. Palgrave Macmillan, 2nd edition. URL http://www.dictionaryofeconomics.com/article?id=pde2008_P000213.

Hahn, F. H. (1981). Review: A Neoclassical Analysis of Macroeconomic Policy. Economic Journal, 91(364): 1036–1039. URL http://www.jstor.org/stable/ 2232512.

Hudík, M. (2011). Why Economics is Not a Science of Behaviour. Journal of Economic Methodology, 18(2): 147–162.

Kakarot-Handtke, E. (2011a). Primary and Secondary Markets. SSRN Working Paper Series, 1917012: 1–25. URL http://ssrn.com/abstract=1917012.

Kakarot-Handtke, E. (2011b). The Propensity Function as General Formalization of Economic Man/Woman. SSRN Working Paper Series, 1942202: 1–28. URL http://ssrn.com/abstract=1942202.

Kakarot-Handtke, E. (2011c). Reconstructing the Quantity Theory (I). SSRN Working Paper Series, 1895268: 1–26. URL http://ssrn.com/abstract=1895268.

Kakarot-Handtke, E. (2011d). Reconstructing the Quantity Theory (II). SSRN Working Paper Series, 1903663: 1–19. URL http://ssrn.com/abstract=1903663.

Kakarot-Handtke, E. (2011e). Why Post Keynesianism is Not Yet a Science. SSRN Working Paper Series, 1966438: 1–15. URL http://ssrn.com/abstract=1966438.

Kakarot-Handtke, E. (2012). The Rhetoric of Failure: A Hyper-Dialog About Method in Economics and How to Get Things Going. SSRN Working Paper Series, 2047177: 1–50. URL http://ssrn.com/abstract=2047177.

Kates, S. (1998). Say’s Law and the Keynesian Revolution. How Macroeconomic Theory Lost its Way. Cheltenham, Northampton, MA: Edward Elgar.

Keynes, J. M. (1973). The General Theory of Employment Interest and Money. The Collected Writings of John Maynard Keynes Vol. VII. London, Basingstoke: Macmillan. (1936).

Mill, J. S. (2004). Essays on Some Unsettled Questions of Political Economy, chapter On the Definition of Political Economy; and the Method of Investigation Proper to It., pages 93–125. Electronic Classic Series PA 18202: Pennsylvania State University. URL http://www2.hn.psu.edu/faculty/jmanis/jsmill/Unsettled-Questions.pdf.

Mirowski, P. (1986). Mathematical Formalism and Economic Explanation. In P. Mirowski (Ed.), The Reconstruction of Economic Theory, pages 179–240. Boston, MA, Dordrecht, Lancaster: Kluwer-Nijhoff.

Popper, K. R. (1960). The Poverty of Historicism. London, Henley: Routledge and Kegan Paul.

Schmiechen, M. (2009). Newton’s Principia and Related ‘Principles’ Revisted, volume 1. Norderstedt: Books on Demand, 2nd edition.

Schumpeter, J. A. (1994). History of Economic Analysis. New York, NY: Oxford University Press.

Sowell, T. (2008). Say’s Law. In S. N. Durlauf, and L. E. Blume (Eds.), The New Palgrave Dictionary of Economics Online, pages 1–5. Palgrave Macmillan, 2nd edition. URL http://www.dictionaryofeconomics.com/article?id=pde2008_S000028.

Tómasson, G., and Bezemer, D. J. (2010). What is the Source of Profit and Interest? A Classical Conundrum Reconsidered. MPRA Paper, 20557: 1–34. URL http://mpra.ub.uni-muenchen.de/20557/.