Von Neumann's consistency proof

We consider the consistency proof for a weak fragment of arithmetic published by von Neumann in 1927. This proof is rather neglected in the literature on the history of consistency proofs in the Hilbert school. We explain von Neumann’s proof and argue that it fills a gap between Hilbert’s consistency proofs for the so-called elementary calculus of free variables with a successor and a predecessor function and Ackermann’s consistency proof for second-order primitive recursive arithmetic. In particular, von Neumann’s proof is the first rigorous proof of the consistency of an axiomatization of the first-order theory of a successor function

John von Neumann's 'Impossibility Proof' in a Historical Perspective

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Introducing Formalism in Economics: The Growth Model of John von Neumann

The objective is to interpret John von Neumann's growth model as a decisive step of the forthcoming formalist revolution of the 1950s in economics. This model gave rise to an impressive variety of comments about its classical or neoclassical underpinnings. We go beyond this traditional criterion and interpret rather this model as the manifestation of von Neumann's involvement in the formalist programme of mathematician David Hilbert. We discuss the impact of Kurt Gödel’s discoveries on this programme. We show that the growth model reflects the pragmatic turn of the formalist programme after Gödel and proposes the extension of modern axiomatisation to economics..Von Neumann, Growth model, Formalist revolution, Mathematical formalism, Axiomatics

Introducing formalism in economics: The growth model of John von Neumann

The objective is to interpret John von Neumann's growth model as a decisive step of the forthcoming formalist revolution of the 1950s in economics. This model gave rise to an impressive variety of comments about its classical or neoclassical underpinnings. We go beyond this traditional criterion and interpret rather this model as the manifestation of von Neumann's involvement in the formalist programme of mathematician David Hilbert. We discuss the impact of Kurt Gödel's discoveries on this programme. We show that the growth model reflects the pragmatic turn of the formalist programme after Gödel and proposes the extension of modern axiomatisation to economics

Beyond Normal Form Invariance : First Mover Advantage in Two-Stage Games with or without Predictable Cheap Talk

Von Neumann (1928) not only introduced a fairly general version of the extensive form game concept. He also hypothesized that only the normal form was relevant to rational play. Yet even in Battle of the Sexes, this hypothesis seems contradicted by players' actual behaviour in experiments. Here a refined Nash equilibrium is proposed for games where one player moves first, and the only other player moves second without knowing the first move. The refinement relies on a tacit understanding of the only credible and straightforward perfect Bayesian equilibrium in a corresponding game allowing a predictable direct form of cheap talk.

The construction of Electromagnetism

Abstract We examine the construction of electromagnetism in its current form, and in an alternative form, from a point of view that combines a minimal realism with strict rational demands. We begin by discussing the requests of reason when constructing a theory and next, we follow the historical development as presented in the record of original publications, the underlying epistemology (often explained by the authors) and the mathematical constructions. The historical construction develops along socio-political disputes (mainly, the reunification of Germany and the second industrial revolution), epistemic disputes (at least two demarcations of science in conflict) and several theories of electromagnetism. Such disputes resulted in the militant adoption of the ether by some, a position that expanded in parallel with the expansion of Prussia. This way of thinking was facilitated by the earlier adoption of a standpoint that required, as a condition for understanding, the use of physical hypothesis in the form of analogies; an attitude that is antithetic to Newton's “hypotheses non fingo”. While the material ether was finally abandoned, the epistemology survived in the form of “substantialism” and a metaphysical ether: the space. The militants of the ether attributed certainties regarding the ether to Faraday and Maxwell, when they only expressed doubts and curiosity. Thus, the official story is not the real history. This was achieved by the operation of detaching Maxwell's electromagnetism from its construction and introducing a new game of formulae and interpretations. Large and important parts of Maxwell work are today not known, as for example, the rules for the transformation of the electromagnetic potentials between moving systems. When experiments showed that all the theories based in the material ether were incorrect, a new interpretation was offered: Special Relativity (SR). At the end of the transformation period a pragmatic view of science, well adapted to the industrial society, had emerged, as well as a new protagonist: the theoretical physicist. The rival theory of delayed action at distance initiated under the influence of Gauss was forgotten in the midst of the intellectual warfare. The theory is indistinguishable in formulae from Maxwell's and its earlier versions are the departing point of Maxwell for the construction of his equations. We show in a mathematical appendix that such (relational) theory can incorporate Lorentz' contributions as well as Maxwell's transformations and C. Neumann's action, without resource to the ether. Demarcation criteria was further changed at the end of the period making room for habits and intuitions. When these intuited criteria are examined by critical reason (seeking for the fundaments) they can be sharpened with the use of the Non Arbitrariness Principle, which throws light over the arbitrariness in the construction of SR. Under a fully rational view SR is not acceptable, it requires to adopt a less demanding epistemology that detaches the concept from the conception, such as Einstein's own view in this respect, inherited from Hertz. In conclusion: we have shown in this relevant exercise how the reality we accept depends on earlier, irrational, decisions that are not offered for examination but rather are inherited from the culture

Condition number complexity of an elementary algorithm for resolving a conic linear system

Cover title.Includes bibliographical references (p. 47-48).Supported through NSF Graduate Research Fellowship.Marina Epelman and Robert M. Freund

Testing serial independence using the sample distribution function

This paper presents and discusses a nonparametric test for detecting serial dependence. We consider a Cramèr-v.Mises statistic based on the difference between the joint sample distribution and the product of the marginals. Exact critical values can be approximated from the asymptotic null distribution or by resampling, randomly permuting the original series. The approximation based on resampling is more accurate and the corresponding test enjoys, like other bootstrap based procedures, excellent level accuracy, with level error of order T-3/2. A Monte Carlo experiment illustrates the test performance with small and moderate sample sizes. The paper also includes an application, testing the random walk hypothesis of exchange rate returns for several currencies