Newtonian Microeconomics

A Dynamic Extension to Neoclassical Micro Theory

Authors: Estola, Matti

  • Defines economic forces acting upon economic quantities
  • Defines and applies a system of measurement units for economics
  • Compares results of every presented theory with observed economic behaviour
  • Provides a deep level of understanding for empirical testing of economic theories
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  • ISBN 978-3-319-46879-2
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Hardcover $169.00
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About this book

Presenting the dynamic laws of economic quantities, this book tackles one of the core difficulties of current economic theory: that of transforming abstract equations of equilibrium into precise dynamic rules. The theoretical framework of neoclassical micro theory has historically prohibited its development into a quantitative science. Estola identifies the main weaknesses of this framework as follows: 1) Static optimization does not allow for the modelling of time-dependent production and consumption flows; 2) The assumption of optimal behaviours forecloses any understanding of changes in economic quantities, as none will change its optimal behaviour. The author of this title assumes that economic units tend to better their situation where possible. The book demonstrates how this approach leads to an analogous framework in economics to the Newtonian framework in physics. The ‘forces’ acting upon economic quantities, which either cause adjustment toward an equilibrium state or keep the system in motion with time, are defined such that the neoclassical framework corresponds to a ‘zero-force’ situation. Introducing a system of measurement units for economic phenomena, Estola applies this throughout, and thereby illuminates a way for microeconomics to meet the minimum requirements of quantitative analysis.

About the authors

Matti Estola is Senior Lecturer in Economics at the University of Eastern Finland. His research specialises in methodology, quantitative methods and econophysics. Estola has lectured in microeconomics at elementary, intermediate and advanced levels for over 20 years, and has published numerous articles on economic dynamics.

Table of contents (10 chapters)

Buy this book

eBook $129.00
price for USA (gross)
  • ISBN 978-3-319-46879-2
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $169.00
price for USA
  • ISBN 978-3-319-46878-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Newtonian Microeconomics
Book Subtitle
A Dynamic Extension to Neoclassical Micro Theory
Authors
Copyright
2017
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s)
eBook ISBN
978-3-319-46879-2
DOI
10.1007/978-3-319-46879-2
Hardcover ISBN
978-3-319-46878-5
Edition Number
1
Number of Pages
XVIII, 464
Number of Illustrations and Tables
45 b/w illustrations, 52 illustrations in colour
Topics