Reconstructing the Quantity Theory (I)

The quantity theory is disjunct to the hard core of general equilibrium theory. It does not relate to the formal foundations of standard economics and, vice versa, from the behavioral axioms of standard economics a rationale for using money cannot be derived. The present paper leaves the standard axioms aside and reconstructs the quantity theory from entirely new structural axiomatic foundations. This gives a coherent view of the interrelations of quantity of money, transaction money, saving–dissaving, liquidity–illiquidity, rates of interest, leverage, allocation, prices, profits, unit of account, and employment

Keynes’s missing axioms

Between Keynes’s verbalized theory and its formal basis persists a lacuna. The conceptual groundwork is too small and not general. The quest for a comprehensive formal basis is guided by the question: what is the minimum set of foundational propositions for a consistent reconstruction of the money economy? We start with three structural axioms. The claim of generality entails that it should be possible to prove that Keynes’s formalism is a subset of the structural axiom set. The axioms are applied to a central part of the General Theory in order to achieve consistency and generality

The rhetoric of failure: a hyper-dialog about method in economics and how to get things going

All are agreed that orthodox economics is unsatisfactory but there is wide disagreement, especially among heterodox critics, whether the problems lie at the level of substantive theory or at the level of methodology. This paper gives first an overview of the methodological questions at issue. The frame of reference includes J. S. Mill, Jevons, Popper, Keynes, and Lawson. Drawing on the conclusions, the domain of economics is subsequently refocused. Human behavior is moved from the center to the periphery. From elementary systemic properties the relation of income and profit is then consistently derived. This solves the profit conundrum

Increasing returns and stability

Increasing returns are an incontrovertible fact since Adam Smith hailed them as the very originators of wealth, yet they play havoc with general equilibrium. They fit, in marked contrast, nicely into the structural axiomatic framework. This indicates that it is worthwhile to replace the behavioral axioms of standard economics by objective structural axioms. These are in the present paper applied to the question of how increasing returns affect the systemic interrelations in the pure consumption economy. To invite a reality check the logical implications of the structural employment equation are set in relation to three well-known statistical relationships.New framework of concepts; Structure-centric; Axiom set; Verdoorn’s law; Phillips curve; Okun’s law

Unemployment out of nowhere – a structural axiomatic analysis of objective determinants

Unemployment is usually explained with reference to the equilibrium of supply and demand in the labour market. This approach rests on specific behavioral assumptions that are formally expressed as axioms. The standard set of axioms is replaced in the present paper by a set of structural axioms. This approach yields the objective determinants of employment. They consist of effective demand, the actual outcome of price formation, structural stress as determined by the heterogeneity within the business sector and the income distribution. Sudden changes of employment are effected by latent relative switchers that are hard to spot empirically.New framework of concepts; Structure-centric; Axiom set; Full employment; Employment–profit ratio trade-off; Causality; Economic law; Historical specificity; Latent relative switcher

Reconstructing the Quantity Theory (II)

Part (I) and (II) of this paper reconstruct the quantity theory from structural axiomatic foundations. This yields a coherent view of the interrelations of quantity of money, transaction money, saving–dissaving, liquidity–illiquidity, rates of interest, leverage, allocation, prices, profits, unit of account, and employment. Part (II) focuses on the symmetric and asymmetric process of nominal and real saving–dissaving and on the monetization of nonfinancial assets. The distinction between liquidity preferences of individual households and the household sector as a whole proves to be crucial.New framework of concepts; Structure-centric; Axiom set; Complementary time preference; Time transfer; Real rate of interest; Inventory; Nonfinancial profit; Transmission mechanism; Asset-liability structure; Capital market

The propensity function as formal passkey to economic action

The purpose of the present paper is to demonstrate how the interaction of the structural axiomatic core and the behavioral propensity function produces plausible outcomes in the product market. The propensity function is a compact formal expression of random, semi-random, and deterministic behavioral assumptions. Its two components are direction and magnitude of the rate of change of an elementary axiomatic variable. A type-C propensity function is the formal container for a familiar conception that Samuelson identified as qualitative prediction. Two type-C functions are sufficient to produce stochastic stability and optimality in the product market.New framework of concepts; Structure-centric; Axiom set; Qualitative prediction; Tendency laws; Separability; Determinism–indeterminism; Information function; Action function

Vegetation Green Up: Ground-Truthing NDVI Data Using Wildlife Cameras

Plant phenology in mountainous areas follows elevation gradients, with spring green-up beginning in low elevations and increasing in elevation as the season progresses. This green-up is an important ecological event as studies have shown ungulates sync their spring migration to this green wave for maximum nutrition consumption at the beginning of the season. This correlation is useful when studying habitat use of ungulates. The current standard for tracking this green-up uses the normalized difference vegetation index, or NDVI. This index tracks changes in vegetation using satellite imaging every eight days and assigns a value on a greenness scale that correlates to the amount of green vegetation present at a scale of 6.25 ha. Vegetation change can be measured by the change in the values of the greenness scale over time. While this index is useful for studying large areas, its accuracy in spaces less than 6.25 ha is questioned. The goal of my research is to classify vegetation green-up using daily camera trap photos collected at 106 sites throughout a study area from March to July of 2019. This study area is in Spanish Fork Canyon in central Utah and includes elevations from 1,000 to 3,000 meters. The photos from these sites provide camera-based greenness values at ground level at a small spatial scale. Comparing the average rate of change in camera-based greenness values to the instantaneous rate of greenup (IRG) derived from NDVI data will show how accurate satellite-based indices for this area are. The purpose of this study is to track vegetation green-up in this area and investigate the accuracy of IRG by comparing it to camera-based greenness values that evaluate vegetation greenness on a much smaller scale.https://digitalcommons.usu.edu/fsrs2020/1024/thumbnail.jp

Redemption and Depression

According to prevailing methodological criteria, standard economics is definitively refuted. Joan Robinson’s wake-up call “Scrap the lot and start again” has therefore lost nothing of its original freshness and urgency. Yet, how can the restart succeed? This inquiry builds on structural axioms. First, conceptual consistency is assured and the confusion about profit and income is dissolved. The question of interest is then how a recession or depression develops as the result of the normal functioning of the monetary economy. This involves the identification of positive feedback. A very effective mechanism consists of the circular interaction of profit and distributed profit