The Logical Interface Between Objective Macrofoundations and Subjective Valuations

12 Pages Posted: 30 Jan 2022 Last revised: 14 Feb 2022

See all articles by Egmont Kakarot-Handtke

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: January 26, 2022

Abstract

Economists never managed to consistently integrate micro- and macroeconomics. Walrasian economics is built upon microfoundations. These consist of patently absurd subjective-behavioral assumptions. Keynesian economics is built upon objective-structural macrofoundations. These are algebraically defective. Both approaches get the foundational economic concept of profit wrong. Because the axiomatic foundations are provably false, the whole analytical superstructure of economics is scientifically worthless. The present paper starts with the correct macrofoundations and determines the logical interface between objective market price and the multitude of subjective valuations.

Keywords: new framework of concepts, structure-centric, axiomatization, microfoundations, macrofoundations, paradigm shift

JEL Classification: B13, B16, B21, B22, B41, D10, D40, D46, E20, E30

Suggested Citation

Kakarot-Handtke, Egmont, The Logical Interface Between Objective Macrofoundations and Subjective Valuations (January 26, 2022). Available at SSRN: https://ssrn.com/abstract=4018155 or http://dx.doi.org/10.2139/ssrn.4018155

Egmont Kakarot-Handtke (Contact Author)

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

Keplerstrasse 17
Stuttgart
Germany

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