Abstract
As already mentioned in the introduction, the objectives of the individual are important building blocks for a stakeholder society. Already the classical economists had an open view on this issue. General interdependence considerations for a human society come next. Finally, the introduction of mathematics into economics will form another important starting point. A narrower view of economics, such as normative economics, will not be treated in this book.
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Notes Part 1 Chapter 1
T.R. Malthus, An Essay on the Principle of Population (1803), edition Everyman’s Library, London New York, vol.i, 18–19.
N.W. Senior, An Outline of the Science of Political Economy, Encyclopaedia Metropolitana, 1836, 131–132.
A. Marshall, Principles of Economics, 1890, 8th ed. 1920, MacMillan, New York, fourth printing 1952, Book III: on Wants and their Satisfaction, 83.
H.H. Gossen, The Law of Human Relations and the Rules of Human Action derived therefrom, translated by R.C. Blitz, MIT Press, Cambridge (Mass), 1983, 3.
W.S. Jevons, The Theory of Political Economy, 1871, 304.
H.H. Gossen, op.cit, 3.
H. Guitton, Statistique et Econométrie, 1959, Dalloz, Paris, 9.
A. Smith, The Wealth of Nations, (1776–78) ed. Everyman’s Library, London-New York, 1950.
E. Roll, A History of Economic Thought, Prentice-Hall, New York, 1952, 248–324.
T.R. Malthus, op.cit, 18–19.
“One hundred and fifty years ago, when Quesnay first published his famous schema, his contemporaries and disciples acclaimed it as the greatest discovery since Newton’s laws. The idea of general interdependence between the various parts of an economic system has become by now the very foundation of economic analysis”. W. W. Leontief, Quantitative Input and Output Relations in the Economic System of the United States, The Review of Economic Statistics, vol. XVIII, August 1936, 105.
A. Marshall, Principles of Economics, 1890, 8th ed. 1920, MacMillan, New York, fourth printing 1952, 369.
For Keynes criticizing Marshall see: R. F. Harrod, The Life of John Maynard Keynes, London 1951, 117. For Keynes as Marshallian, see: H. G. Johnson, The General Theory after twenty-five years, American Economic Review, May 1961, 1–25. J. R. Hicks, Value and Capital, 2nd. ed. Oxford, 1953, 3.
Under these circumstances it is rather strange that Keynes called his main work a General Theory, namely: J.M. Keynes, The General Theory of Employment, Interest and Money, London, first edition 1936, 176.
For this first period of the life of Keynes, see the book of the biographer and previous student of Keynes, Sir R. F. Harrod: The Life of John Maynard Keynes, London 1951, 1–176.
J. M. Keynes, The General Theory of Employment, Interest and Money, chapter 14: “the Classical Theory of the Rate of Interest” London, first edition 1936, 176.
P. A. Samuelson, Foundations of Economic Analysis, Cambridge (U.S.A.) 1953, 314.
H. Guitton, Statistique et Econométrie, op.cit., 475–478.
P. A. Samuelson, op. cit. 311.
J. M. Clark, Economic Essays contributed in honor of J.B. Clark, New York, 1927, 46–70.
J. R. Hicks, Value and Capital, Oxford, 2nd edn. 1946, 115.
Hicks writes that in mechanics dynamics means power corresponding to the meaning in old Greek. Also in politics, dynamic would mean powerful action. In common parlance dynamic could mean movement such as modern art being dynamic, op. cit., 115.
E. Roll, A History of Economic Thought, New York 1952, 471.
J. Tinbergen, Economic Policy: Principles and Design, Amsterdam 1956, 4–5.
“Hie microtlieory runs in terms of firms and the macrotlieory in terms of industries”. H. Tlieil, Linear Aggregation in Input-Output Analysis, Econometrica, January 1957, 111.
“There are, on the one hand, micro models, in which a large number of ‘compartments’ is assumed to exist (e.g. firms and households) and where, for example, a distinction is drawn between a large number of different goods. On the other hand there are macro models where such distinctions are not made, but certain features common to all compartments are considered, perhaps in more detail than would otherwise have been possible”. Economic Policy: Principles and Design, Amsterdam 1956, 28. Afterwards the author develops what he means by ‘common to all compartments’, for instance: national income, national expenditures, the general price level, public and private expenditures, taxes, money, balance of payments, full employment, the general wage level, exchange rates etc. On the contrary the detailed description of public finance belongs to micro-economics (op. cit., 40–47).
For instance Balderston and Whitin state that aggregation makes the difference between micro-and macro-economics. It is a question of degree rather than of kind” J. B. Balderston and T. M. Whitin, Aggregation in the input-output model, Economic Activity Analysis (ed. O. Morgenstern) New York 1954, 80.
R. F. Harrod, op. cit., 502.
It is worthwhile to mention some other important work in mathematical economics not having the pretension to be complete. P. A. Samuelson, Foundations of Economical Analysis, Cambridge (U.S.) 1947. R. G. D. Allen, Mathematical Economics, London 1957. W. J. Baumol, Economic Theory and Operations Analysis, Englewood Cliffs N.J. 1961. R. G. D. Allen, Macro-Economic Theory, London 1967. A. C. Chiang, Fundamental Methods of Mathematical Economics, Tokyo 2nd edn.1974. Confusion is possible with what is called: ‘mathematics for economists’ as in: R. G. D. Allen, Mathematical Analysis for Economists, London 1956.
J. Tinbergen, Econométrie, 2nd ed. Gorinchem (NI.) 1942, written in Dutch in the beginning of the thirties, was probably the first handbook on econometrics.
R. Frisch, Editorial, Econometrica vol. I, January 1933.
J. F. van Waterschoot, W. K. Brauers, A. P. Sümer et al. A Bank of Econometric Knowledge, Feasibility Study, University Leiwen, Louvain 1974, 1.
Hoel maintains that the collecting and smnmarizing of data is usually called descriptive statistics, whereas the source of the data is called statistical inference” (P. G. Hoel, Elementary Statistics, New York-London, 1971, 2. A much more restricted definition is given by W. L. Hays when he declares that “statistical inference involves statements about probability” (W. L. Hays, Statistics for the Social Sciences, 2nd.edn. London, 1974, 47.
R. Roy, François Divisia, 1889–1964, Econometrica, vol.33, No3, 1965, 637.
J. Tinbergen, Selected Papers, Amsterdam 1959, 37–84.
J. Tinbergen, Statistical Testing of Business Cycle Theories, League of Nations, Geneva, 1939.
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Brauers, W.K. (2004). New Economics Against the History of Economic Thought. In: Optimization Methods for a Stakeholder Society. Nonconvex Optimization and Its Applications, vol 73. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-9178-2_2
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