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Non-maximum Disequilibrium Macrodynamics

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Author Info
Velupillai, Kumaraswamy
Abstract

In his stimulating Nobel Prize Lecture, Paul Samuelson made the important point that there were interesting macrodynamic systems which could, in no sensible sense, be associated with maximization problems. The paradigmatic example he chose was the multiplier-accelerator system. In this paper I make an attempt to explore the connection between macrodynamics, rationality and computability against the backdrop provided by Samuelson's observation and Richard Goodwin's nonlinear methodological credo. It is shown that non-maximum, disequilibrium macrodynamics is perfectly consistent with standard rationality postulates. Copyright 1999 by Taylor and Francis Group

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Article provided by Taylor and Francis Journals in its journal Economic Systems Research.

Volume (Year): 11 (1999)
Issue (Month): 2 (June)
Pages: 113-26
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Handle: RePEc:taf:ecsysr:v:11:y:1999:i:2:p:113-26

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  1. Guido Fioretti, 2002. "Recognizing Investment Opportunities at the Onset of Recoveries," Macroeconomics 0207008, EconWPA. [Downloadable!]
    Other versions:
  2. Guido Fioretti, 2002. "The Investment Acceleration Principle Revisited by Means of a Neural Net," Computational Economics 0207002, EconWPA. [Downloadable!]
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