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Economics for Economists

29 Pages Posted: 1 Nov 2014 Last revised: 29 Apr 2015

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: October 31, 2014

Abstract

The characteristic capability of science – to turn whatever it might touch into knowledge – seems to have eluded economics. Currently, economists do not understand how the economy works. To get out of the cul-de-sac requires a paradigm shift. It consists in replacing behavioral axioms by structural axioms. The subject matter of theoretical economics is not human behavior but systemic behavior. From the structural analysis follows a new Law of Supply and Demand and a new Profit Law for the economy as a whole. The conventional supply-demand-equilibrium approach is refuted. This implies that the reliance on the spontaneous order metaphor is unfounded.

Keywords: new framework of concepts, structure-centric, axiom set, Profit Law, Law of Supply and Demand, self-adjustment

JEL Classification: B59, B49, D03, D40

Suggested Citation

Kakarot-Handtke, Egmont, Economics for Economists (October 31, 2014). Available at SSRN: https://ssrn.com/abstract=2517242 or http://dx.doi.org/10.2139/ssrn.2517242

Egmont Kakarot-Handtke (Contact Author)

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

Keplerstrasse 17
Stuttgart
Germany

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