Overview
- Defines economic forces acting upon economic quantities
- Defines and applies a system of measurement units for economics
- Compares results of every presented theory with observed economic behaviour
- Provides a deep level of understanding for empirical testing of economic theories
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Table of contents (10 chapters)
Keywords
About this book
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.
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Authors and Affiliations
About the author
Matti Estola is Senior Lecturer in Economics at the University of Eastern Finland. His research specialises in methodology, quantitative methods and econophysics. Estola has lectured in microeconomics at elementary, intermediate and advanced levels for over 20 years, and has published numerous articles on economic dynamics.
Bibliographic Information
Book Title: Newtonian Microeconomics
Book Subtitle: A Dynamic Extension to Neoclassical Micro Theory
Authors: Matti Estola
DOI: https://doi.org/10.1007/978-3-319-46879-2
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2017
Hardcover ISBN: 978-3-319-46878-5Published: 01 February 2017
Softcover ISBN: 978-3-319-83610-2Published: 03 May 2018
eBook ISBN: 978-3-319-46879-2Published: 20 January 2017
Edition Number: 1
Number of Pages: XVIII, 464
Number of Illustrations: 45 b/w illustrations, 52 illustrations in colour
Topics: Economic Theory/Quantitative Economics/Mathematical Methods, Microeconomics, History of Economic Thought/Methodology, Political Economy/Economic Systems, Labor Economics, Mathematical Methods in Physics