There is no greater gap between economic theory and econometric practice than that which characterizes the literature on business investment in fixed capital. According to the neoclassical theory of capital, as expounded for example by Irving Fisher, a production plan for the firm is chosen so as to maximize utility over time. Under certain well-known conditions this leads to maximization of th...

Loss Aversion and Labor Supply In many occupations workers’ labor supply choices are constrained by institutional rules regulating labor time and effort provision. This renders explicit tests of the neoclassical theory of labor supply difficult. Here we present evidence from studies examining labor supply responses in “neoclassical environments” in which workers are free to choose when and how ...

I analyze two connections between neoclassical and classical economics. First, I consider the indeterminacy that arises for both schools: in the neoclassical theories of overlapping generations and of factor pricing and in Sraffa’s price theory. Neoclassical indeterminacy occurs only in environments where relative prices can change through time; otherwise, determinacy obtains. Although these re...

The relation between Thermodynamics and Economics is a paramount issue in Ecological Economics. Two different levels can be distinguished when discussing it: formal and substantive. At the formal level, a mathematical framework is used to describe both thermodynamic and economic systems. At the substantive level, thermodynamic laws are applied to economic processes. In Ecological Economics, the...

Considering the company as an integral part of market system, theories appeared that reveal traditional economic theory and take into account sphere business.

How do material norms and aspirations on which individual judgments of well-being are based affect the growth dynamics of an economy? Do economies that weigh very highly of these norms grow differently from those economies that values these norms differently? This paper attempts to answer these questions by building a growth model, where individual not only care for its consumption but also eva...

An application of the thermodynamic field theory (TFT) to transport processes in L-mode tokamak plasmas is presented. The nonlinear corrections to the linear (”Onsager”) transport coefficients in the collisional regimes are derived. A quite encouraging result is the appearance of an asymmetry between the Pfirsch-Schlüter (P-S) ion and electron transport coefficients: the latter presents a nonli...

Economists inside and outside of the Austrian-school tradition have formulated a subjectivist theory of mineral resources. While von Mises (1940) presented a rudimentary theory, institutionalist Zimmermann (1933 and after) provided an indepth mind-centered approach distinct from the objective, neoclassical theory for minerals developed by Jevons (1865, 1866), Gray (1913), and Hotelling (1931). ...