Equilibrium in Ethic Economics

Statistical Equilibrium Models in Economics

The concept of equilibrium states has played a decisive role in the development of quantitative sciences. The study of mechanical equilibrium, conceived as a balancing of forces in a static system, clarified the fundamental notions of force and mass in the course of the 17th century development of Newtonian physics. The 19th century saw the emergence of characteristically statistical descriptio...

Nash equilibrium and economics: Remarks

The concept of Nash equilibriumhas become central to the theory and practice of economics. In these remarks I would like to reflect a bit on why this has come to happen. Interestingly enough the founding treatise of the theory of games (The Theory of Games and Economic Behaviour, published in 1944 and authored by a mathematician J. von Neumann and an economist O. Morgernstern) had, for practica...

Implausible Equilibrium Solutions in Economics and Finance

Models that admit only equilibrium solutions are prevalent in neoclassical economics and modern finance. Such solutions lack path dependence and evolve only in reaction to exogenous changes but, worryingly, the stability of these solutions and the nature of any non-equilibrium alternatives are rarely considered. We describe how such equilibrium solutions, and the modeling assumptions underpinni...

The Protestant Ethic versus the "New Ethic"

New Keynesian economics: Between equilibrium and disequilibrium

In an attempt to explain and forecast the behavior of economic variables and of the economy as a whole, each school of economics creates its own system of paradigms, premises and models. The New Keynesian school of thought developed from the traditional Keynesian insights tries to offer additional explanations, based on microeconomic foundations, for such phenomena as economy-wide fluctuations ...