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AXEC provides the correct formal foundations of theoretical economics.

 

The evolving production-consumption economy is given with the Starter Set which consists of axioms and definitions

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Y total income, W wage rate, L labor input, D dividend, N number of shares, O output, R productivity, EC consumption expenditures, P price, X quantity bought, Z placeholder, Q profit (total, monetary, nonmonetary), S saving.

In the path representation of the economy (right), the seven elementary variables run through t periods. In the unit-circle representation (left) holds market-clearing X=O, budget-balancing EC=Y, and DN=0. By consequence, Qm=0.

At first glance, it is not immediately obvious what the axioms say. This is a quite normal effect. On closer inspection, though, axioms have in most cases been found to be exceedingly useful. As a matter of fact, a consistent set of axioms is indispensable as an analytical steppingstone. Nobody can do science without clearly stated premises. This is the prime requisite. Therefore, the selection of axioms is all-important. The AXEC axiom set is new in theoretical economics. Every single axiom is objective and elementary — and this is exactly as it should be.


Axioms define a Paradigm. The AXEC macrofoundations fully replace the failed Walrasian microfoundations and the failed Keynesian macrofoundations. 

 

Proceed...

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