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Consumption Function Theory and Income Hypothesis

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Consumption Function Theory and Income Hypothesis:

In accordance with consumption theory and income hypothesis in Iranian school of economic thought, determination of exact place and size of consumption and income of families is impossible even if we are talking about the permanent income.

First explanation: Ultimate desire for consumption in the economy of developed countries and under developing countries is not a fixed amount through passage of time. Increase in population and difference in consumption desire of families has impact on that.

Second explanation is that based on the hypothesis of income, the consumption is not a function of permanent income. However, it is related to the foresight and an ethical and social framework.

 

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Knowledge Continuity Theory

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Knowledge Continuity Theory

The knowledge required for running the economic system will be transferred from one generation to the next.

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Theory of Operating Markets

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Theory of Operating Markets (Land, Labor, Capital, Income and Distribution):

The Iranian school of economy considers manpower as the foundation of any efficient economic system, and training will determine the optimal use of land and capital for the production of goods and services and their ability to distribute production facilities fairly in the macroeconomic structure of the country and the world to achieve It will enable the national per capita income and the global economy. The reflection of exports in the equation of GDP will determine the grade of the leading scientific centers of each country. In this regard, we present the theory of the organization in the form of a government and a country. D&R of Which sectors have the largest share in the government? The budget for scientific research and development of infrastructure facilities with the defense budget will determine long-term strategies to enter the markets of the global economy. Will investing in the agricultural and green industry help us? Or the sale of military facilities with the theory of the convergence of civilizations in international politics.

Theory of operating markets (land, labor, capital and income and distribution): mathematical analysis, in multi-criteria functions, in addition to each of the country’s economic sectors as criteria in the field of macroeconomics must move towards comprehensive development by method organized programs and programs to earn more money from the global economy given the fundamental relationship between supply and demand for goods and services provided by each economic system to the global economy and achieving credit value pricing in the global market must move in line with the global economy To smile at the taste of global consumer markets in a narrow point of production and macroeconomic services of a country;

The condition of being one to one  fx1=fx2 –> x1=x2

What does function mean? Each line parallel to the y-axis intersects the diagram of a function maximum at one point, which this condition is attached to the appendix diagram.

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Theory of Chaos in Iranian School of Economic Thought

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Theory of Chaos in Iranian School of Economic Thought

Lack of resources for production and lack of consumption market for products made, will cause disorder in all parts of economic system.

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Theory of Value and Unknown Choice

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Theory of Value and Unknown Choice :

Farmers and industrialists produce their products but can not sell it with known price. The price depends on the quality and demands. In mathematics and in the process of calculation of a derivative we use value and unknown choice. In the implicit derivative calculation, we must pay heed to the recognition of the independent variable from function variable if the X is independent variable, then Y is function of x, hence DxX=1 but Dxy is unknown.

Explanation: If the theory of value and unknown choice is the same for all economic activists in the global market, we will use it in Iranian school of economic thought as the law of value and unknown choice.

Other implicit derivative calculation: Dx M=1 but Dxy is unknown the same as

 

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Economic Value

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Economic Value :

The origin of lots of economic goods that are made in an economical system is based on the needs of human societies and the satisfaction of their requirements.

Explanation: Economic value is practically a reflection of requirements and production with economic foresight.

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Open Letters to Chauvinistic Iranian People and Economists

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Open Letters to Chauvinistic Iranian People and Economists

Theory of growth and business cycle: Growth and development in business cycle (economic effectiveness, social effectiveness, environmental effectiveness, financial effectiveness) in many cases the growth is related to quantitative items such as and profit-making items like loss and profit. But the growth is related to financial stability that has long-term horizon. The effectiveness of each section means the access to special goals of that section. For example, environmental effectiveness can depict the reduction of pollutants and financial effectiveness can depict the reduction of debts in the public sectors.

With better look to financial management of public section it will trigger three concepts. The first is related to the microeconomic concepts that is hidden behind many items and are called side effects. As a matter of fact, side effects are expenditures that are not borne by the real and legal entities that incurred them rather than they are borne by third persons or the whole society.

 

So, the amount of its acceleration is always proportional to the size of the distance of the particle from a fixed point on the line, and also the direction of acceleration and motion is always opposite to each other. So coordinated movement is simple.

 

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Collection of Open Letters to Iranians and Iranian Economists

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Collection of Open Letters to Iranians and Iranian Economists

For financial effectiveness unlikely economical goods will have no intrinsic value and only they are valuable with social contracts and credits. The value of the money is related to the goods that we can buy with that and not because of the direct usage of the money, these days we have two common definitions for commercial money, M1 that are consisted of current monetary system and current deposit.

Second Definition: Vast definition of money, M2, that other than M1 includes the money with high liquidity such as saving accounts and the rates of interest that are paid for the movement and progression of business cycles. People for getting loans from banks that its investors are people and companies will pay as much interest freely because the fees paid to them from the bank will empower them buy their requirements and they can invest for earning profit. The production of such system is called business cycles.

After mathematics there has been an absolute convergence between economic growth and business cycles.

Regarding the theory of growth and business cycles and their relation with mathematical functions, economical effectiveness, environmental effectiveness is a criterion or an approach that will lead to efficiency in the theory of growth and business cycles and will maximize the management performance. On the strength of mathematical functions, we will have the third-degree function

 

 

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Collection of Theories on Iranian School of Economic Thought

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Collection of Theories on Iranian School of Economic Thought

Thought –>  Plan –> Proper Supervision –>  Proper Execution  –>  Production –> Growth –> Development

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Collection of Theories on Iranian School of Economic Thought

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Collection of Theories on Iranian School of Economic Thought

Human Society –> Scientific Culture –> Political Culture –>  Developed Organizational Management –> Biosphere (Humans Societies, Seas and Lakes, Oceans and Lakes and Jungles and Mountains) –> Developed Economy