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:
“and the oxen near
The worn foundations of their resting-place,
The holy manger where their bed is corn
And holly torn for Christmas. If they die,
As Jesus, in the harness, who will mourn?
Lamb of the shepherds, Child, how still you lie.”
—Robert Lowell (1917–1977)
“For me, it is as though at every moment the actual world had completely lost its actuality. As though there was nothing there; as though there were no foundations for anything or as though it escaped us. Only one thing, however, is vividly present: the constant tearing of the veil of appearances; the constant destruction of everything in construction. Nothing holds together, everything falls apart.”
—Eugène Ionesco (b. 1912)
“Motherhood is the second oldest profession in the world. It never questions age, height, religious preference, health, political affiliation, citizenship, morality, ethnic background, marital status, economic level, convenience, or previous experience.”
—Erma Bombeck (20th century)
“Ask anyone committed to Marxist analysis how many angels on the head of a pin, and you will be asked in return to never mind the angels, tell me who controls the production of pins.”
—Joan Didion (b. 1934)