Why is Causal Economics (CE) a Unifying Theory of Economics?

CE is a unifying theory of economics because the other major models of economics can be derived from it at both a micro and macro level.

At a micro level, major decision models, such as BE and EU, can be derived from CE through particular restrictions. Specifically, cost and benefit, both deliberate and uncertain are collapsed into a single time period and single outcome value and valued through a single variable function.

BE can be derived when sign-tiered comonotonic dependence is collapsed to sign comonotonicity and a reference point is enforced, and EU is derived when traditional independence is enforced.

At a macro level, all social coordination interactions, including free market and governmental as subsets, are analyzed through a single measure, the Causal Coefficient (Causal Coefficient). Mainstream economics does not leverage a single analytical measure such as this, but all other theories can be cast in the context of the CC.

Leave a Reply

Your email address will not be published. Required fields are marked *