Foundations of Economic Analysis

Samuelson, P. A. (1947). Foundations of Economic Analysis. Harvard University Press.

Type

Book

Intellectual base

Review or monograph

Year

1947

Link

https://www.hup.harvard.edu/books/9780674313033

Cited from

economics_finance, philosophy

Cited by

3 citations across 3 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes

• Ceteris Paribus
  • The prime distinguishes ceteris paribus from several adjacent moves. Decomposition splits a whole into parts and analyzes each on its own terms, without necessarily holding the others fixed during analysis. Scope names the extent of validity of a claim, which is the consequence of a ceteris-paribus analysis but not the analysis itself. Comparative statics, controlled experiment, and modular reasoning are the calculus, design-science, and software versions respectively — children, not synonyms.

    This sourceDevelops comparative statics, expressing "all else equal" as the partial derivative holding all other prices and incomes constant.

• Comparative Statics
  • First, equilibrium-first modelling: the system must have a well-defined resting state for each parameter setting, normally characterized by first-order conditions, a market-clearing or balance condition, or a fixed point.

    This sourceEstablishes comparative statics as a systematic method, deriving equilibrium responses to parameter changes via the second-order conditions and the implicit-function theorem applied to first-order conditions, and states the correspondence principle and Le Chatelier reasoning in economics. (

• Trade-offs
  • The Pareto frontier of affordable consumption bundles is traced by the budget line; the MRS along indifference curves determines the substitution rate. Production possibility frontier (PPF): The frontier of production combinations of two goods given fixed inputs, formalizing the trade-off between expanding one good's production at the cost of another.

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