New Quantitative Techniques for Economic Analysis

New Quantitative Techniques for Economic Analysis

1st Edition - February 28, 1982

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  • Editor: Giorgio P. Szegö
  • eBook ISBN: 9781483273464

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Economic Theory, Econometrics, and Mathematical Economics: New Quantitative Techniques for Economic Analysis provides a critical appraisal of the results, the limits, and the developments of well-established quantitative techniques. This book presents a detailed analysis of the quantitative techniques for economic analysis. Organized into four parts encompassing 16 chapters, this book begins with an overview of the general questions concerning models and model making. This text then provides the main results and various interesting economic applications of some quantitative techniques that have not been widely used in the economic field. Other chapters consider the principle of optimality in dynamic programing wherein the infinite sequence of consumption-saving decisions can be reduced to one decision. This book discusses as well the methods for online control and management of large-scale systems. The final chapter deals with special problems. This book is a valuable resource for economists, social scientists, epistemologists, economic historians, and research workers.

Table of Contents

  • List of Contributors


    Part I Models and Reality

    Mathematical Methods for Economic Analysis: A Biased Review

    1. Historical Background

    2. Chaos and Order

    3. A Reappraisal of Established Techniques

    4. Conclusions


    Dynamic Econometric Models: A System-Theoretic Critique

    1. Background

    2. Definition of "Model" in System Theory

    3. Some Properties of Models

    4. Results of Realization Theory

    5. Conclusions concerning Stage (1)

    6. Stage (2): Parametrization

    7. Conclusion


    Economics: Past and Future

    1. Introduction: The Case of Economics

    2. The Positivist Approach to Economics

    3. The Neopositivist Approach to Economics

    4. Economics Between Ideology and Praxeology

    5. Physical Systems and the Economic System

    6. The Cognitive Process by Which the Economic System Is Envisaged

    7. The Ideological Prejudices (Fallacies) of the Neoclassical Definition of the Economic System

    8. How Can We Assess Preanalytic Knowledge?

    9. Some Fundamental Properties of the Economic and the Social Systems

    10. Connections Between the Social and Economic Systems

    11. Equilibrium Model and Economic Theory

    12. The Normal Structure and the Law of Motion of the Economy

    13. Efficiency and Equilibrium

    14. Aggregation in Economic Models

    15. Normative Models in Economics

    16. Individual and Social Choices

    17. Theory and Observation

    18. Diachronic Stability and Historical Stability

    19. Catastrophe Theory and Structural Changes in the Economic System

    20. The Role of Expectations and Some Possible Discontinuities in the Economic Process

    21. Quantitative Changes and Evolution

    22. Knowledge and Behavior


    Part II New Quantitative Techniques at Work

    Ergodicity for Economists

    1. Introduction

    2. A Two-Dimensional Mapping Model Exhibiting Chaotic Behavior

    3. Integrable Systems

    4. The Transition from Integrable to Chaotic Behavior in Conservative Systems

    5. Ergodic and Mixing Systems and C Systems

    6. K Systems and B Systems

    7. Statistical Description of Chaotic Systems

    8. Closing Remarks


    Catastrophe Theory in Banking and Finance

    1. Introduction

    2. Catastrophe Theory

    3. Catastrophic Bank Failure

    4. Conclusions and Summary


    Order by Fluctuation and the Urban System

    1. Introduction

    2. Interurban Dynamics

    3. Conclusion


    The Qualitative Analysis of Nonlinear Dynamic Economic Systems by Structural Methods

    1. Introduction

    2. Aspects of Systems Structure

    3. The Nature of Nonlinear Oscillatory Behavior

    4. Economic Models


    Part III A Reappraisal of Established Methods

    Optimal Consumption Plans—A Dynamic Programming Approach

    1. Consumption Planning under Certainty

    2. Section 2

    3. Section 3

    4. Section 4

    5. Section 5

    6. Section 6

    7. Section 7

    8. Section 8

    9. Risk

    10. Section 10

    11. Section 11


    Generalized Separation Property for Dynamic Portfolio Models

    1. Introduction

    2. Revised Merton Model

    3. A Complete Separation Theorem for Alternative Risks

    Appendix. A Brief Outline of Stochastic Control


    Hierarchical Control and Coordination in Dynamical Systems

    1. Introduction

    2. Hierarchical Optimization by Price Coordination

    3. Price Coordination and Optimization of Complex Systems with Inventory Couplings

    4. Two-Level Control Structure with Price Coordination for Systems with Inventory Couplings


    Discontinuous Solutions in n-Person Games

    1. Introduction

    2. Weighted Majority Games

    3. The Case of Three-Person Games

    4. Constant-Power Sets

    5. Share Trading

    6. The Generating Algorithm

    7. Further Outstanding Problems

    8. Conclusions


    Part IV Special Problems

    Elementary Properties of Nonnegative Matrices


    Optimal Control of Econometric Models: Some Experimental Results for the Italian Monetary Sector

    1. Introduction

    2. The Computational Scheme

    3. Experimental Results



    Stability and Instability in a Two-Dimensional Dynamical System: A Mathematical Approach to Kaldor's Theory of the Trade Cycle

    1. Section 1

    2. Section 2

    3. Section 3

    4. Section 4

    5. Summary


    Competitive Equilibrium and Indivisible Commodities

    1. Introduction

    2. The Problem of the Existence of a Competitive Equilibrium in an Economy with Unique (or Indivisible) Commodities

    3. Competitive Pseudoequilibrium in an Economy with Unique (or Indivisible) Commodities


    New Results for a Competitive Equilibrium


Product details

  • No. of pages: 336
  • Language: English
  • Copyright: © Academic Press 1982
  • Published: February 28, 1982
  • Imprint: Academic Press
  • eBook ISBN: 9781483273464

About the Editor

Giorgio P. Szegö

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