Foundations of Economic Analysis

Foundations of Economic Analysis is a book by Paul A. Samuelson published in 1947 (Enlarged ed., 1983) by Harvard University Press. It sought to demonstrate a common mathematical structure underlying multiple branches of economics from two basic principles: maximizing behavior of agents (such as of utility by consumers and profits by firms) and stability of equilibrium as to economic systems (such as markets or economies). Among other contributions, it advanced the theory of index numbers and generalized welfare economics. It is especially known for definitively stating and formalizing qualitative and quantitative versions of the "comparative statics" method for calculating how a change in any parameter (say, a change in tax rates) affects an economic system. One of its key insights about comparative statics, called the correspondence principle, states that stability of equilibrium implies testable predictions about how the equilibrium changes when parameters are changed.

Read more about Foundations Of Economic Analysis:  Introduction, Topical Outline, Methods and Analysis, Appendices, Enlarged Edition, Assessments

Famous quotes containing the words foundations of, foundations, economic and/or analysis:

    Hitherto shalt thou come, but no further: and here shall thy proud waves be stayed.
    —Bible: Hebrew Job 38:11.

    God speaking to Job of his laying of his “foundations of the earth.”

    Honorable Senators: My sincerest thanks I offer you. Conserve the firm foundations of our institutions. Do your work with the spirit of a soldier in the public service. Be loyal to the Commonwealth and to yourselves and be brief; above all be brief.
    Calvin Coolidge (1872–1933)

    It does not follow, because our difficulties are stupendous, because there are some souls timorous enough to doubt the validity and effectiveness of our ideals and our system, that we must turn to a state controlled or state directed social or economic system in order to cure our troubles.
    Herbert Hoover (1874–1964)

    Cubism had been an analysis of the object and an attempt to put it before us in its totality; both as analysis and as synthesis, it was a criticism of appearance. Surrealism transmuted the object, and suddenly a canvas became an apparition: a new figuration, a real transfiguration.
    Octavio Paz (b. 1914)