Further Issues

The mainstream of economics is still a collection of diverse ideas and theories. Economists traditionally rely on verbal descriptions or linearized equations with a few variables. Traditional methods cannot describe changes in variables that are linked by complex nonlinear relationships. Dynamic phenomena due to complex nonlinear relationships are beyond the ability of economists to investigate a few decades ago. Recent developments in mathematics, sciences, and computers, as well as the availability of individual and government data, mean that the theory developed in this book is not only theoretically insightful but also empirically testable, conceptually extendable, and functionally generalizable. It applies to my concept of disposable income and utility functions to explore the complexity of economic development with heterogeneous households. I integrate diverse ideas and theories in economics within an integrated framework. The analytical framework allows me to analyze many problems. The book is based on many traditional ideas and models. Each traditional theory has a vast literature. My theory is general in that it connects the main economic forces in many theories. It is an “open” general economic theory and can be further generalized by incorporating new findings from sciences, engineering, economics, psychology, political sciences, social sciences, history, etc.