Essentials of Constructive Heterodoxy: The Market

Kakarot-Handtke, Egmont (2015): Essentials of Constructive Heterodoxy: The Market.

Abstract

The consensus is that orthodox economics is a failure in three dimensions: conceptual, methodological, and empirical. Heterodoxy has meticulously sorted out the multitude of errors, mistakes, and distortions. Yet, this alone does not help out of stagnation. Economists have now to go into constructive mode. The most urgent task is to replace the misleading supply-demandequilibrium representation of the market. The reconstruction of the centerpiece of the market system from scratch paves the way to the new paradigm. Nobody can talk about the market system without a correct idea of how the market works. Heterodox economists must take the innovative lead.

• Item Type: MPRA Paper
• Language: English
• Keywords: new framework of concepts; structure-centric; Law of Supply and Demand; market clearing; budget balancing
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B59 - Other; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - General

References

Ingrao, B., and Israel, G. (1990). The Invisible Hand. Economic Equilibrium in the History of Science. Cambridge, MA, London: MIT Press.

Keen, S. (2010). Solving the Paradox of Monetary Profits. Economics E-Journal, 4(2010-31). URL http://dx.doi.org/10.5018/economics-ejournal.ja.2010-31.

Kreuzenkamp, H. A., and McAleer, M. (1995). Simplicity, Scientific Inference and Econometric Modeling. Economic Journal, 105: 1–21. URL http://www.jstor.org/stable/2235317.

McCauley, J. L. (2006). Response to "Worrying Trends in Econophysics". EconoPhysics Forum, 0601001: 1–26. URL http://www.unifr.ch/econophysics/paper/ show/id/doc_0601001.

Nell, E. J. (1980). Growth, Profits, and Property, chapter Cracks in the Neoclassical Mirror: On the Break-Up of a Vision, pages 1–16. Cambridge, New York, NY, Melbourne: Cambridge University Press.

Newton, I. (1999). The Principia; Mathematical Principles of Natural Philosophy. Berkley, CA, Los Angeles, CA, London: University of California Press. (1687).

Popper, K. R. (1994). The Myth of the Framework. In Defence of Science and Rationality. London, New York, NY: Routledge.

Stigum, B. P. (1991). Toward a Formal Science of Economics: The Axiomatic Method in Economics and Econometrics. Cambridge, MA: MIT Press.