American International Journal of Social Science

ISSN 2325-4149(Print), ISSN 2325-4165(Online) DIO: 10.30845/aijss

Economics and/or Mathematics, Equilibrium and Aggregation in Economic Science
Hasse Ekstedt

The dominating approach in economic science is the neoclassical theory. It is built on an axiomatic structure which creates an economic man who is rational and optimizing. The axioms also allowadditive aggregation so the individuals can be aggregated into a sort of society in which complete efficiency is obtained with respect to the use of productive resources in relation to the welfare of the society given an initial resource distribution. This paper shows that a closer inspection of the axiomatic structure in relation to the so called Arrow’s paradox leads to the conclusion that although the neoclassical optimization approach may well describe the individual behavior, but any form of aggregation to the economy as a whole is basically built on a misinterpretation of the axiomatic structure and thus on false logics.

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