Foundations of Economic Development
DYNAMIC ECONOMICS with increasing returns is extended to cope with economic growth, the business cycles and the irregular swings in the long-term development as different aspects of the same dynamical system, the economic system "as a whole". HUMAN CAPITA
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Foundations of Economic Development
With 67 Figures
Springer-Verlag Berlin Heidelberg New York London Paris Tokyo Hong Kong Barcelona Budapest
Professor Dr. ARVID AULIN Professor of Mathematics and Methodology The Finnish Academy of Science and Letters Oulunkyllintori 2 C 16 SF-00640 Helsinki, Finland
ISBN-13: 978-3-642-77594-9 DOl: 10.1007/978-3-642-77592-5
e-ISBN-13: 978-3-642-77592-5
Library of Congress Cataloging-in-Publication Data. Aulin, Arvid. Foundations of economic development I Arvid Aulin. p.cm. Includes bibliographical references and index. 1. Human capital - Mathematical models. 2. Economics - Mathematical models. 3. Economic development -- Mathematical models. 4. Statics and dynamics (Social sciences) -- Mathematical models. I. Title. HD75.5A85 1992
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ToPirkko
Contents Preface ............................................. XI
PART I. HUMAN CAPITAL: The Fundamental Concept 1. Science and Human Capital ........................ 3 1.1. 1.2. 1.3.
Accumulating Scientific Knowledge as the Basis of Human Capital .......................................... 3 Creative or "Hard" Science vs. Commenting or "Soft" Science .................................................. 5 The Rational Core of Human Civilization .................. 9
2. Enemies of Human Capital ........................ 11 2.1. 2.2. 2.3.
Philosophical Hubris ..................................... 11 Philosophical Dogmatism ................................ 13 Dogmatic Cultural Relativism ........................... 18
3. The Nature of Exact Science ...................... 21 3.1. 3.2.
The Formation of Fundamental Theories .................. 22 How Godel's Theorem Confirmed and Kuhn's Philosophy Failed to Refute the Cumulative Nature of Exact Scientific Knowledge .................................... 27
VIII
PART II. NONLINEAR CAUSALITY: An Introduction to Higher Analysis of Causal Processes 4. Mathematical Dynamics as the Fundamental Method of Causal Science ......................... 41 4.1. 4.2.
The Historical Struggle Between the linguistic and Dynamic Conceptions of Science ......................... 42 T
