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 and/or economic:
“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)
“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)
“Weapons are an important factor in war, but not the decisive factor; it is people, not things, that are decisive. The contest of strength is not only a contest of military and economic power, but also a contest of human power and morale. Military and economic power is necessarily wielded by people.”
—Mao Zedong (1893–1976)