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:
“I have seen how the foundations of the world are laid, and I have not the least doubt that it will stand a good while.”
—Henry David Thoreau (18171862)
“The world must be made safe for democracy. Its peace must be planted upon the tested foundations of political liberty.”
—Woodrow Wilson (18561924)
“A different world can be created or re-createdbut not until we stop enshrining the economic values of invisible labor, infinite and obsessive growth, and a slow environmental suicide.”
—Gloria Steinem (b. 1934)
“The spider-mind acquires a faculty of memory, and, with it, a singular skill of analysis and synthesis, taking apart and putting together in different relations the meshes of its trap. Man had in the beginning no power of analysis or synthesis approaching that of the spider, or even of the honey-bee; but he had acute sensibility to the higher forces.”
—Henry Brooks Adams (18381918)