Settling the Theory of Saving

23 Pages Posted: 22 Feb 2013 Last revised: 18 Jun 2015

See all articles by Egmont Kakarot-Handtke

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: February 19, 2013


There is no way around it: each theory rests on a tiny set of foundational propositions. Standard economics rests on behavioral axioms. After a long intellectual detour it should be clear by now that behavioral axioms are the wrong formal departure point. Being beyond repair, they have to be replaced by objective structural axioms. This paper deals with saving and its relation to investment and profit. It starts from the fact that there is no such thing as a ‘real’ economy. Hence economic phenomena are only explicable as the outcome of the interaction of real and nominal variables.

Keywords: new framework of concepts, structure-centric, axiom set, period core theorem, income, profit, investment, productivity, time shift

JEL Classification: B41, C65, E20

Suggested Citation

Kakarot-Handtke, Egmont, Settling the Theory of Saving (February 19, 2013). Available at SSRN: or

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17

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