Properties of an Economy Without Human Beings
24 Pages Posted: 14 Jun 2011 Last revised: 28 Jul 2011
Date Written: June 13, 2011
Standard economics starts with behavioral axioms and arrives at conclusions about the equilibrium properties of the economy as a whole at point t. The present paper employs objective structural axioms and random changes in order to determine the conditions for market clearing and budget balancing in the pure consumption economy until the limit t → ∞. From the conditions of stochastic supersymmetry six simple behavioral rules are derived that guarantee the desired outcome. These rules contrast with actual behavior and this explains why the plans and expectations of economic man are many times frustrated.
Keywords: New framework of concepts, Structure-centric, Axiom set, Random consumption economy, Evolutionary properties, Benchmark process, Stochastic supersymmetry, Structural laissez-faire
JEL Classification: D50, E20, E30, E40
Suggested Citation: Suggested Citation