Presenting the dynamic laws of economic quantities this book tackles one of the core
difficulties of current economic theory: that of transforming abstract equations of equilibrium
into precise dynamic rules. The theoretical framework of neoclassical micro theory has
historically prohibited its development into a quantitative science. Estola identifies the main
weaknesses of this framework as follows: 1) Static optimization does not allow for the
modelling of time-dependent production and consumption flows 2) The assumption of optimal
behaviours forecloses any understanding of changes in economic quantities as none will change
its optimal behaviour. The author of this title assumes that economic units tend to better
their situation where possible. The book demonstrates how this approach leads to an analogous
framework in economics to the Newtonian framework in physics. The ¿forces¿ acting upon economic
quantities which either cause adjustment toward an equilibrium state or keep the system in
motion with time are defined such that the neoclassical framework corresponds to a
¿zero-force¿ situation. Introducing a system of measurement units for economic phenomena
Estola applies this throughout and thereby illuminates a way for microeconomics to meet the
minimum requirements of quantitative analysis.
