Wicksell advocates unanimous consent for providing public goods. This paper reviews some existing works to fulfill Wicksell’s dream and proves that they are all ineffective. It then develops a model to solve for both the tax rate and the contribution simultaneously. It further proves that such...

Previous bargaining theories confirm that all efforts to stabilize the unstable Pareto optimal solution of cooperation are self-defeating. Instead of issuing threat, this paper shows the carrots. We do not give the players carrots, but we just show them that if they cooperate they can make the...

Bargaining is about how to split a pie between two persons. This paper reveals the inconsistency of the Rubinstein (1982) bargaining model. Its algebra is not correctly reflected by his Edgeworth box. Although an Edgeworth box guarantees complete exhaustion of the resource, it contains two pies....

Nash (1950) proposes a bargaining theory. This paper proves that Nash’s theory is not about bargaining, but is the result of exchange. Exchange also requires bargaining, but exchange itself is not bargaining

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...

Keynes (1936) offers two different definitions of income. This paper proves that his expenditure definition of income is negative. When the double-entry method helps change the Keynesian negative amount into positive, it abets the crime!

Bertrand Russell used a simple paradox to disprove set theory. Thence, set theory has become a secondary tool of mathematics. Economists seem unaware of this incidence and continue to use this tool. This paper also proves that Walras' arbitrator, Nash's umpire, Arrow's dictator, and...

This paper proves that Friedman's permanent consumption theory implies zero saving. The consequences are severe: there will be no capital accumulation, no economic growth, but there is unlimited multiplier of wastage

Keynes' Liquidity theory relies on three underpinnings: uncertainty, hoarding and speculation. This paper examines their validity, and finds that: 1. Uncertainty means precautionary demand; 2. Hoarding is the negation of money supply; 3. Speculation may lose money. It also finds that Keynes'...