Expectations in Economic Theory

by S. A. Ozga

Overview

This book deals with economic theory, not methodology. It does employ certain methodological resolutions. These resolutions and the limitations they impose on the nature and the scope of the analysis are reviewed. The first resolution concerns what kind of a theory is to be discussed. The word theory may mean many things; it may mean a hypothesis put forward as an explanation of something, an idea, or a notion. In a normative sense it may mean a recommendation, a rule, or principle to be followed. In science it usually means a system of hypotheses to be accepted as an explanation of certain facts, a set of general laws, and principles. It is also used to distinguish the general principles and methods of a subject from the practice of it.

The theory with which this volume is concerned is that of science. In very general terms it may be defined as a system of hypotheses, one following from another, which permits the reader to derive from known facts and predictions of other facts. If the knowledge of the fact which we predict is important for us, in the sense that it permits us to achieve better the objectives we pursue, the theory may have a practical value. This book is therefore not only a contribution to the analysis of expectations but also an introduction to a number of selected topics in economic theory.

Product Details

ISBN-13:	9780202361550
Publisher:	Transaction Publishers
Publication date:	12/15/2007
Pages:	302
Product dimensions:	6.00(w) x 9.00(h) x (d)
Age Range:	16 Years

About the Author

S. A. Ozga was born in Poland and received his first doctorate in economics in Warsaw. He obtained then a Ph.D. degree at the University of London and joined the staff of the London School of Economics, where at present he holds a readership in economics. His many contributions, covering a wide range of subjects in utility theory, in the theory of the firm, of international trade and of economic growth, have been published inEconomica, The Economic Journal and The Review of Economic Studies in the United Kingdom, in The Journal of Political Economy and The Quarterly Journal of Economics in the United States, and in Rivista di Politica Economica in Italy.

Table of Contents

One: Formalization of Expectations; 1: The Nature of Expectations; 2: Logical Relations in Expectations; 3: Subjective Factors in Expectations; Two: Sure-Prospect Equivalents; 4: The Hypothesis of a Formula; 5: Reduction by Choice; 6: Theories of Moral Expectation; Three: Selective Reductions; 7: Shackle’s Theory of Expectations; 8: Theory of Games; 9: Other Hypotheses

Editorial Reviews

This is an expository work of the rarest excellence. When the author’s deep insight and infallible technical mastery have drawn from the reader an unqualified admiration, his ultimate response must be to the beauty of a work of art considered as a whole…. No praise can be too high for the quality of thought which Dr. Ozga’s book relentlessly maintains, or for the brilliance of his expository skill, or for the scholar’s dedication to his task, which on every page glows and scintillates for the reader’s encouragement.” —G. L. S. Shackle, Economica “[T]his book may be recommended as a comprehensive and reliable introduction to, and balanced evaluation of, a difficult and very important area of research in economics.” —H. A. John Green, The Canadian Journal of Economics and Political Science “The author of this interesting book surveys, discusses, and evaluates a substantial range of theories which relate to principles of decision-making under uncertainty…. The reviewer found the book useful and enjoyable, and he recommends it to all readers interested in decision theory, or in general social-science methodology, or in both.” —William Fellner, Journal of Political Economy

From the Publisher