This paper proves the existence of consumer’s and producer’s surplus, and their aggregate counterparts, without betting on some favorable price changes. Such surplus is the excess value over opportunity cost. Instead of hoping for favorable price change, a more positive attitude to obtain...

Modern economic growth theory is trapped by its own equilibrium. This paper proves that the neo and new classical growth models do not derive growth and that they do not succeed in bringing population and households into the scene. To break through the development trap, this paper applies a...

This paper work out a breakthrough to formulate profit tax, something economists have long wished for and many have given up. Profit tax is practiced in many countries, and even the existing excise tax system is just practically a profit tax system. This paper helps bring economics closer to the...

This paper offers an alternative theory of corporate finance, to replace the invalid MM theorem. It derives the optimal amount of fund, which can be equity or debt. It introduces a new concept called marginal yield. It corrects the meaning of borrowing. It reproduces the MM theorem, to show its...

Dale W. Jorgenson's user cost is a concept widely applied, especially, in public finance, but such applications seem incomplete when there is no supply curve. His model also requires knowledge of future incomes, without which there is not even a demand for capital. This paper detects a...

This paper shows that the mathematics of the neoclassical theory of the firm is inconsistent, that constant returns-to-scale is a linear algebra misspecification, that minimum average cost is not an efficiency measure, and that the short run marginal cost curve is not a supply curve. A...