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:

    We shall never resolve the enigma of the relation between the negative foundations of greatness and that greatness itself.
    Jean Baudrillard (b. 1929)

    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)

    The idealist’s programme of political or economic reform may be impracticable, absurd, demonstrably ridiculous; but it can never be successfully opposed merely by pointing out that this is the case. A negative opposition cannot be wholly effectual: there must be a competing idealism; something must be offered that is not only less objectionable but more desirable.
    Charles Horton Cooley (1864–1929)

    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)