May 15, 2012

Geometrical exposition of structural axiomatic economics (I): fundamentals {30}

Working paper at SSRN

Abstract  Behavioral assumptions are not solid enough to be eligible as first principles of theoretical economics. Hence all endeavors to lay the formal foundation on a new site and at a deeper level actually need no further vindication. Part (I) of the structural axiomatic analysis submits three nonbehavioral axioms as groundwork and applies them to the simplest possible case of the pure consumption economy. The geometrical analysis makes the interrelations between income, profit, employment, and money under the conditions of market-clearing and budget-balancing immediately evident.