Essentials of Constructive Heterodoxy: The Market

10 Pages Posted: 10 Jan 2015 Last revised: 16 Jan 2015

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: January 8, 2015

Abstract

The consensus is that orthodox economics is a failure in three dimensions: conceptual, methodological, and empirical. Heterodoxy has meticulously sorted out the multitude of errors, mistakes, and distortions. Yet, this alone does not help out of stagnation. Economists have now to go into constructive mode. The most urgent task is to replace the misleading supply-demand equilibrium representation of the market. The reconstruction of the centerpiece of the market system from scratch paves the way to the new paradigm. Nobody can talk about the market system without a correct idea of how the market works. Heterodox economists must take the innovative lead.

Keywords: new framework of concepts, structure-centric, Law of Supply and Demand, market clearing, budget balancing

JEL Classification: B59, D40

Suggested Citation

Kakarot-Handtke, Egmont, Essentials of Constructive Heterodoxy: The Market (January 8, 2015). Available at SSRN: https://ssrn.com/abstract=2547098 or http://dx.doi.org/10.2139/ssrn.2547098

Egmont Kakarot-Handtke (Contact Author)

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

Keplerstrasse 17
Stuttgart
Germany

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