Newtonian Microeconomics

A Dynamic Extension to Neoclassical Micro Theory

Business & Finance, Economics, Microeconomics, Theory of Economics
Cover of the book Newtonian Microeconomics by Matti Estola, Springer International Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Matti Estola ISBN: 9783319468792
Publisher: Springer International Publishing Publication: January 20, 2017
Imprint: Palgrave Macmillan Language: English
Author: Matti Estola
ISBN: 9783319468792
Publisher: Springer International Publishing
Publication: January 20, 2017
Imprint: Palgrave Macmillan
Language: English

Presenting the dynamic laws of economic quantities, this book tackles one of the core difficulties of current economic theory: that of transforming abstract equations of equilibrium into precise dynamic rules. The theoretical framework of neoclassical micro theory has historically prohibited its development into a quantitative science. Estola identifies the main weaknesses of this framework as follows: 1) Static optimization does not allow for the modelling of time-dependent production and consumption flows; 2) The assumption of optimal behaviours forecloses any understanding of changes in economic quantities, as none will change its optimal behaviour. The author of this title assumes that economic units tend to better their situation where possible. The book demonstrates how this approach leads to an analogous framework in economics to the Newtonian framework in physics. The ‘forces’ acting upon economic quantities, which either cause adjustment toward an equilibrium state or keep the system in motion with time, are defined such that the neoclassical framework corresponds to a ‘zero-force’ situation. Introducing a system of measurement units for economic phenomena, Estola applies this throughout, and thereby illuminates a way for microeconomics to meet the minimum requirements of quantitative analysis.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Presenting the dynamic laws of economic quantities, this book tackles one of the core difficulties of current economic theory: that of transforming abstract equations of equilibrium into precise dynamic rules. The theoretical framework of neoclassical micro theory has historically prohibited its development into a quantitative science. Estola identifies the main weaknesses of this framework as follows: 1) Static optimization does not allow for the modelling of time-dependent production and consumption flows; 2) The assumption of optimal behaviours forecloses any understanding of changes in economic quantities, as none will change its optimal behaviour. The author of this title assumes that economic units tend to better their situation where possible. The book demonstrates how this approach leads to an analogous framework in economics to the Newtonian framework in physics. The ‘forces’ acting upon economic quantities, which either cause adjustment toward an equilibrium state or keep the system in motion with time, are defined such that the neoclassical framework corresponds to a ‘zero-force’ situation. Introducing a system of measurement units for economic phenomena, Estola applies this throughout, and thereby illuminates a way for microeconomics to meet the minimum requirements of quantitative analysis.

More books from Springer International Publishing

Cover of the book Challenges and Opportunities in Health Care Management by Matti Estola
Cover of the book Advanced Sensing Techniques for Cognitive Radio by Matti Estola
Cover of the book Engineering Secure Software and Systems by Matti Estola
Cover of the book Data Interpretation in Anesthesia by Matti Estola
Cover of the book Image Analysis by Matti Estola
Cover of the book Applied Artificial Intelligence: Where AI Can Be Used In Business by Matti Estola
Cover of the book Recent Trends in Computational Engineering - CE2014 by Matti Estola
Cover of the book Climate Change Impacts on Hydrological Processes and Sediment Dynamics: Measurement, Modelling and Management by Matti Estola
Cover of the book New Perspectives on Applied Industrial Tools and Techniques by Matti Estola
Cover of the book Exploring Digital Ecosystems by Matti Estola
Cover of the book Multidimensional Views on Enterprise Information Systems by Matti Estola
Cover of the book At the Size Limit - Effects of Miniaturization in Insects by Matti Estola
Cover of the book Financing in Europe by Matti Estola
Cover of the book European Union External Environmental Policy by Matti Estola
Cover of the book Nursing in Critical Care Setting by Matti Estola
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy