Standing on the toes of pygmies : why econophysics must be careful of the economic foundations on which it builds

Steve Keen

Standing on the toes of pygmies : why econophysics must be careful of the economic foundations on which it builds

Steve Keen

Research output: Contribution to journal › Article

24 Citations (Scopus)

Abstract

Modern economic theory does not provide a sound foundation on which to build econophysics. Pivotal concepts like utility maximization, perfect competition, and diminishing marginal productivity are empirically and logically flawed. Physicists should not use any of these in econophysics, and should be wary of many other models accepted by economists.

Original language	English
Number of pages	9
Journal	Physica. A\, Statistical mechanics and its applications
Publication status	Published - 2003

Keywords

business and management
economics
econophysics
financial markets
science and society

Cite this

@article{b6708fc1634b4fb2bbf2e86cf3e87175,

title = "Standing on the toes of pygmies : why econophysics must be careful of the economic foundations on which it builds",

abstract = "Modern economic theory does not provide a sound foundation on which to build econophysics. Pivotal concepts like utility maximization, perfect competition, and diminishing marginal productivity are empirically and logically flawed. Physicists should not use any of these in econophysics, and should be wary of many other models accepted by economists.",

keywords = "business and management, economics, econophysics, financial markets, science and society",

author = "Steve Keen",

year = "2003",

language = "English",

journal = "Physica. A\, Statistical mechanics and its applications",

issn = "0378-4371",

publisher = "North-Holland",

}

TY - JOUR

T1 - Standing on the toes of pygmies : why econophysics must be careful of the economic foundations on which it builds

AU - Keen, Steve

PY - 2003

Y1 - 2003

N2 - Modern economic theory does not provide a sound foundation on which to build econophysics. Pivotal concepts like utility maximization, perfect competition, and diminishing marginal productivity are empirically and logically flawed. Physicists should not use any of these in econophysics, and should be wary of many other models accepted by economists.

AB - Modern economic theory does not provide a sound foundation on which to build econophysics. Pivotal concepts like utility maximization, perfect competition, and diminishing marginal productivity are empirically and logically flawed. Physicists should not use any of these in econophysics, and should be wary of many other models accepted by economists.

KW - business and management

KW - economics

KW - econophysics

KW - financial markets

KW - science and society

UR - http://handle.uws.edu.au:8081/1959.7/10396

M3 - Article

SN - 0378-4371

JO - Physica. A\, Statistical mechanics and its applications

JF - Physica. A\, Statistical mechanics and its applications

ER -

Standing on the toes of pygmies : why econophysics must be careful of the economic foundations on which it builds

Abstract

Keywords

Other files and links

Fingerprint

Cite this