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)
“Neutrality is a negative word. It does not express what America ought to feel.... We are not trying to keep out of trouble; we are trying to preserve the foundations on which peace may be rebuilt.”
—Woodrow Wilson (1856–1924)
“But I would emphasize again that social and economic solutions, as such, will not avail to satisfy the aspirations of the people unless they conform with the traditions of our race, deeply grooved in their sentiments through a century and a half of struggle for ideals of life that are rooted in religion and fed from purely spiritual springs.”
—Herbert Hoover (1874–1964)
“Analysis as an instrument of enlightenment and civilization is good, in so far as it shatters absurd convictions, acts as a solvent upon natural prejudices, and undermines authority; good, in other words, in that it sets free, refines, humanizes, makes slaves ripe for freedom. But it is bad, very bad, in so far as it stands in the way of action, cannot shape the vital forces, maims life at its roots. Analysis can be a very unappetizing affair, as much so as death.”
—Thomas Mann (1875–1955)