- Newtonian time in economics
Newtonian time describes an idea of
time marked mainly by movements along a line (as either discrete orcontinuous units) in the same manner asspace is made up of such units. This framing of time, while useful inphysics , is also common ineconomics .Neo-classical economics implicitly embraces the Newtonian framing of time. In doing so, orthodox economic theory downplays essential facets of a dynamiceconomic system .Austrian school theorists have criticized this conception and claim Newtonian time has little relevance for economics. [cite book
last = O'Driscoll
first = Gerald P.
authorlink =
coauthors = Rizzo, Mario J.
title = The Economics of Time and Ignorance
publisher = Routledge
date = 1996
location =
pages = 55
url =
doi =
id =
isbn = 415121205]pecific examples
Specifically, O'Driscoll and Rizzo point to three elements of Newtonian time in standard economic theory:
*"Homogeneity." All points in time are treated the same (except their temporal coordinate) and thus time can pass without a change in the environment.
Endogenous change in economic agents is not given, includinglearning .*"Mathematical continuity." Just as each point in time is static, each point is disconnected from all other points. The
mathematical nature of Newtonian time demands infinite divisibility, thus time does not "flow" from one period to the next; it leaps. "A Newtonian system is merely a stringing together of static states and cannot endogenously generate change." (p 55)*"Causal inertness." Because time is independent from its contents, all change in the system must be presumed from initial assumptions. Thus Newtonian models lack "genuine change" and "time literally adds nothing." (p 55, [emphasis in original)]
The authors contrast Newtonian time with real time. They maintain "a Newtonian system is merly a stringing together of static states and cannot endogenously generate change. Each period (or point) is thus isolated. Consequently, either we have the mere continuation of a period (no change) or we have change without the ability to show how it could be generated by the previous period" (O'Driscoll and Rizzo, 55).
ee also
*
real time (economics)
*Austrian School
*uncertainty References
External links
* [http://graham.main.nc.us/~bhammel/PHYS/newtqtime.htmlOn Quantum Theoretical Origins Of Newtonian Time In A Generalized Relativistic Quantum Theory With Time Operator In Finite Dimensional C*-algebras] Bill Hammel
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