The Theory of Consumer Demand a Critical Appraisal

Cover The Theory of Consumer Demand a Critical Appraisal
The Theory of Consumer Demand a Critical Appraisal
Geoffrey P E Clarkson
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Further if we had been asked to predict the change in the amount of X. Purchased, prior to seeing whether the demand had actually increased, we would have been able to do so from a listing of the initial and boundary conditions and a statement of the relevant general laws.
In the previous sections we have pointed out that it is not possible to construct this type of an exnlanation from the currently accepted theory of demand. That it is not possible to do so is clear since neither the theory of
... utility nor the theory of demand contains the requisite empirical -in- laws. However, events such as the one described above are frequently explained by economists in a manner that is quite similar to th which we have provided in our example. The principal difference, between the scientific and the "economic" explanation is that the explanatory schemata of the latter cannot ba used to generate testable pre- dictions. Thus, it can only take the form of what we shall call an "explanatory rationalization" of the event after it has occurred.

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