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Godel's incompleteness says that there is a dichotomy: A set of axioms is either complete or consistent, but not both. If it is complete then you can prove any theorem from it but it will be inconsistent i.e. there will be paradoxes hidden somewhere. If it is consistent there won't be paradoxes hidden in it but it will be incomplete i.e some theorems are not ...


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I would say you are getting into identifying a big issue in applied epistemology more generally namely that cross domain communication and knowledge transfer can be very hard which is to say that asking those trained in economics about the applicability of a mathematical proof to their domain is likely to yield unsatisfactory answers to the same degree that ...


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Godel's theorems are about self-referencing statements of the form "This statement is unprovable by X" where 'X' is some system or mechanism for proving things. 'X' is usually some defined system of logic - a set of axioms and rules for proofs - but it doesn't have to be. The basic idea is that if the statement is provable by X, then X can prove ...


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while also saying that empirical papers can reach the complete opposite conclusion with the same data From a mathematical point of view, if your assumptions and logic lead to a contradiction, it means that, by reductio ad absurdum, there is a mistake somewhere. You cannot use the corresponding theory anywhere, because it contains a contradiction, which ...


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Kurt Gödels Incompleteness Theorem is the negative answer to the quest of the mathematician Davild Hilbert in the early 20th century to find a set of complete and consistent axioms upon which to build the whole of mathematics. It turns out that it is not possible to find such a set. Any set of axioms which is complete will lead to inconsistencies; and every ...


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Every science using mathematical reasoning is in some sense subject to Goedel's first incompleteness Theorem, but in a rather trivial sense. This didn't diminish the success of, e.g., physics, and it won't impact economics at all. So yes, in some sense economics is "incomplete", but that's for sure the least of its problems.


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The Incompleteness Theorems apply to computable, first-order, deductive systems. That means that there must be both a computable set of axioms and a computable inference system. In other words, you must be able to write a computer program that can answer the following question: Given a finite sequence of sentences, is it the case that each statement is ...


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A redistributive taxation or progressive taxation would be used by a government to increase equality/ decrease its gini coefficient. This wouldn’t result in an increase in growth rate as aggregate supply would decrease, because of a decrease in capital of firms. (Usually firms are run by higher earners which wouldn’t benefit from such a taxation.) If ...


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So, from my understanding, the normative theory is: anticollusion is good for consumers based on the thought of the policymakers; the positive theory is that due to the logical relation that anticollusion breaks the cartels, the market become more competitive, and consumer gain more consumer surplus, progressing consumers' advantage. As the other +1 answer ...


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Both of these propositions appear to be positive. The first statement is positive because it states a fact which can be rather easily measured. If anti-collusion is good for consumers it is a true statement, so we can research it. It seems as if the proposition is trying to be normative, yet has not fully succeeded. That's due to its adjective, "good&...


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There is no apparent overlap between the two theories. I shall demonstrate their disparities in two ways: Way number 1: In the former, agents have no awareness of probability of outcome, and thus cannot make a decision based on that. In the latter, agents have awareness of the probability of outcome for one of two bets, and prefer to choose it over the other ...


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Yes a well known example from policy economics is setting of optimal marginal tax schedules. Below you can see differences between Rawlsian and Utilitarian optimal tax schedules taken from Saez (2001). As you can see utilitarian and Rawlsian moral philosophy yields completely different optimal marginal taxes (even though the shape is somehow similar). I do ...


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Definition of Positive Theory A positive theory is a theory that attempts to explain how the world works in a value-free way. Definition of Normative Theory Normative theories express what ought to be. In the positive theory of the perfectly competitive market no firm has the descriptive or positive attributes of the monopoly firm. In the positive theory ...


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Why “positive theory” is important in discussions of how antitrust law achieve “normative goal”? Positive theory is important in any economic discussion. Positive economics is economics of what is, facts, data, theoretical relationship derived by logic from some axioms presumed to be true etc. Positive economics statements are statements like "...


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