Classic economic theory, based as it is on an inadequate theory of human motivation, could be revolutionized by accepting the reality of higher human needs, including the impulse to self actualization and the love for the highest values.
Journalists, whose job is to pull back and tell dramatic stories that bring power into focus, find it impossible because things like economic theory are both incomprehensible and, above all, boring. The same is true of 'management science.'
The fact is that during the post-1989 heyday of globalization optimism, political and business elites did not think enough about the prospect - plainly predicted in economic theory - that trade would harm some people even while leaving society as a whole better off. The result was overpromised benefits and inadequate adjustment plans.
If we're talking about big-tent thinking in the Republican Party, I think we're all going to unite under a consistent economic theory. That's where our unity is, and that's what unites us.
Socialism may have failed as an economic theory, but global warming alarmism, with its dire warnings about the consequences of industry and consumerism, is equally a rebuke to capitalism.
A potentially useful property of forecasts based on cointegration is that when extended some way ahead, the forecasts of the two series will form a constant ratio, as is expected by some asymptotic economic theory.
Economic theory dictates that the value of a company is basically the present value of its future profits. To estimate Facebook's value through its future profits, we need to have a view on its user growth and how this will evolve in the next 10 to 50 years.
It was not until I got my first job, at the University of Washington in Seattle, and began playing chess with Don Gordon, a brilliant young theorist, that I learned economic theory.
One of the big take-aways from a lot of economic theory is that people should engage in consumption smoothing.
The theory of mechanism design can be thought of as the 'engineering' side of economic theory.
