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Post-Keynesian Post-Keynesianism (PK) is based on the criticism of the so called "Keynesianism", which according to PKs is not loyal to core Keynes ideas. As such, this school of thought aims to be called the "true" Keynesians. The criticism starts with the workhorse model of Keynesianism, the IS-LM model, developed by Hick in a 1937's article, right after ...


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Material capital is any durable good that is used as a factor of production and, by virtue of being durable, it is gradually consumed in production over a maximum possible duration of a length that is determined by (i) how much a unit of capital is used and (ii) the depreciation rate of a unit of capital. Capital forms by labor and savings (which is in ...


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Chang Ha-Joon distinguishes between 9 schools of thought. Here are his one-sentence summaries of each: Classical: The market keeps all producers alert through competition, so leave it alone. Neoclassical: Individuals know what they are doing, so leave them alone – except when markets malfunction. Marxist: Capitalism is a powerful vehicle for economic ...


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If in equilibrium, a player "chooses a mixed strategy" that plays $H$ and $T$ with positive probability, $H$, and $T$ must be both optimal choices. It is a standard result that for a (subjective or objective) expected utility maximizer, randomizing can only be optimal if it is over pure optimal choices. This is a direct consequence of expected ...


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When you say that a policy's objective is to "maximize well-being", presumably you mean "maximize collective well-being". And presumably, by "collective" well-being, you mean some sort of aggregate or average of the individual well-beings of all members of society. So your question breaks into two parts: What is the right measure of individual well-being? ...


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Yes there are. Two big ones are: Why are some nations rich and why are some nations poor? What are the causes of large scale involuntary unemployment of resources and individuals (I.e. a depression).


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It appears that you equate "science = academic field" which is certainly not the case. Also, it may be true that the word "science" was customarily associated with what we nowadays call "hard science", which exactly proves that the use of the word "science" has been generalized. Hard and soft, humanities and social sciences, they are all "scientific ...


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The Chicago School The Chicago School is a sub-school of the broader neoclassical school of economic thought, named for the significant influence of prominent scholars in Chicago. According to Wikipedia "The term was coined in the 1950s to refer to economists teaching in the Economics Department at the University of Chicago, and closely related academic ...


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There is one theoretically sound methodology to do what you are asking. When you have multiple models to compare, the only choice is Bayesian model selection and Bayesian model averaging. Bayesian methods have several properties that you would want. Any statistic created is intrinsically "admissible," and "coherent." The disadvantage, which does not ...


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Complexity/Evolutionary Economics This approach to economics, widely inspired in Evolutionary Biology, is a direct criticism to Neoclassical Economics, as its key postulates indicate. These are: Economics are open, dynamic, non-linear systems far from equilibrium Agents have realistic rationality, as opposed to perfect rationality. This is, they use ...


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From a Marxist perspective, capital is a social relation. Essentially, it is money that begets more money. As such, it only becomes more or less synonim with "means of production" once it takes over production, ie, once society becomes capitalist. In a feudal society, tools and land are not capital, albeit being means of production. The money of money ...


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Neoclassical Economics It is not-controversial to say that Neoclassical Economics is the dominant strand of economics within mainstream economics, not only in academia but also in teaching. Regarding this school of thought, this article states: It describes the synthesis of the subjective and objective theory of value in a diagram of supply and demand, ...


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First, quoting from wikipedia/Mariam-webster Fungibility is the property of a good or a commodity whose individual units are capable of mutual substitution (i.e., interchangeability). That is, it is the property of essences or goods which are "capable of being substituted in place of one another". Let's move now to McCloskey's example: Ex post, It ...


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In economics and finance, fungibility means that we cannot distinguish between instruments. For example, we normally do not care whether we have one \$20 bill or two \$10 bills. McCloskey's example is poor. In one sense, it is correct: when points are scored do not matter in the final tally. However, it is psychologically incorrect when applied to sports. ...


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Here are a few that come to mind. Bargaining: How are bargaining outcomes determined? Market failure: Why do markets fail, and what are the welfare consequences of their failures? Suppose the answers include moral hazard, limited commitment, adverse selection, and externalities. Then, how can governments or private entities counteract these problems and ...


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Another: Why did the Industrial Revolution begin in England/Northwest Europe rather than anywhere else?


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Your question is a little bit unclear. But still, if you wish to delve into the philosophical side of economical topics/question/phenomena, you can check the Stanford Encyclopaedia of Philosophy's article on Philosophy of economics. It might be a good place to start and refine what you are looking for.


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The real-life question is "how do you persuade people to use mixed strategies"? To stick with your example, Consider a person that has to make a binary choice $(H, T)$, and, after contemplation, they conclude that the optimal strategy is the mixed strategy $(2/3, 1/3)$. I have never know of anyone putting two red and one blue ball in a vase and ...


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However, I encountered an opinion that since all preferences derive from underlaying values they are all strictly normative and considering them positive even in the strict sense of revealed preference is a fallacy. There's a logical inconsistency here which might help see why it's not a good way of looking at the issue. What is the key element that is ...


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This is due to Fractional Reserve System. In fractional reserve system when you make a deposit at a bank bank is required to keep a bit of it as a deposit and it is allowed to lend out the rest. So for example if Central Bank makes an initial money injection into economy. Let’s say 100€ (and it does not really matter whether it’s by helicopter drop or ...


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In microeconomics people are rational if they act to maximize their utility function. What goes into the utility function? Anything that is relevant when they choose, which is of course up to debate. Often economists are content to accept a first order approximation of what matters and should therefore be included in the utility function, namely monetary ...


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(Bottom in bold is a partial TL;DR) The definition your book gives you only seems incoherent because you take "people act to make themselves better off" (your book's definition) as the same as (or similar enough to) "fulfills their desire for happiness" (your characterization or additional characterization in the question you presented). ...


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Neo-classical economists use the concept of utility as a proxy of well-being, and accept that every agent has a different set of preferences for their own utility, but all try to maximise one's own utility. Well-being at an individual level varies imensely and thus is rarely defined. At a macro level, it's generally agreed that the availability and quality ...


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The question and the answer by user14471 seem to relate to the issue of ergodicity in economic systems and models. Economic systems (in reality) cannot conceivably be ergodic, while some economic models are ergodic (those that do not attempt to reflect any of the non-ergodic properties). Necessary concepts to answer this question: Ergodicity, microstates, ...


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One possibility is to measure each basket's value using Win Probability Added (WPA). By this measure, given a tied game, the last basket will usually be much more important than the first. Baskets are therefore not (perfectly) fungible. Example: At the start of the game, the score is 0-0. Let's say Iowa and Michigan are considered evenly matched and each ...


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Feminist Economics Unlike Neoclassical Economics, which focus is usually on scarcity, Feminist economics focuses on the issue of Power relations, particularly in relation to gender and family structure. For example, whilst a neoclassical economist would study the gender gap in terms of benefits and costs (e.g. cost of post-natal leave), a Feminist economist ...


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