Blog-Reference
The First Economic Law is shown on Wikimedia AXEC06 and it connects the fully integrated business sector, the household sector, the market, and the income distribution (2014, eq. (12)):
The First Economic Law is derived from the macroeconomic axiom set and is for economics what the Pythagorean Theorem is for geometry. The Profit Law is implicit in this foundational equation as well as the macroeconomic Law of Supply and Demand and the Employment Law. The axioms relate to a period of a given length.
From the First Economic Law, which holds for one period, follows the Economics God Equation which embodies the open stochastic simulation of the elementary production-consumption economy from period t=0 to infinity. See Wikimedia AXEC25:
From the First Economic Law, which holds for one period, follows the Economics God Equation which embodies the open stochastic simulation of the elementary production-consumption economy from period t=0 to infinity. See Wikimedia AXEC25:
The God Equation comprises the paths of the period variables (2020, pp. 23-26). The paths describe the history of the variables constituting the system's history.
The Keynesian multiplier 1/1−c is provably false. For the correct employment multiplier see (2012, eq. (39)). To arrive at the correct economic key equations, one has to move from false Walrasian microfoundations and false Keynesian macrofoundations to true macrofoundations as given by the axiom set.#1
All models not formally compatible with the systemic macrofoundations are provably false and therefore unacceptable.
Egmont Kakarot-Handtke
References
Kakarot-Handtke, E. (2012). Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster. SSRN Working Paper Series, 2130421: 1–19. URL
Kakarot-Handtke, E. (2014). The Synthesis of Economic Law, Evolution, and History. SSRN Working Paper Series, 2500696: 1–22. URL
All models not formally compatible with the systemic macrofoundations are provably false and therefore unacceptable.
Egmont Kakarot-Handtke
References
Kakarot-Handtke, E. (2012). Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster. SSRN Working Paper Series, 2130421: 1–19. URL
Kakarot-Handtke, E. (2014). The Synthesis of Economic Law, Evolution, and History. SSRN Working Paper Series, 2500696: 1–22. URL
Kakarot-Handtke, E. (2020) Sovereign Economics, Books on Demand, BOD
For details of the big picture see cross-references Axiomatization and cross-references Paradigm Shift
For more about equations see AXECquery.
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Wikimedia AXEC121i
Wikimedia AXEC 112c
