A note on locational-state theoryAlthough the general application of econometrics is to apply "population" statistics and a broad application of statistical classes, averages and variance calculations and relationship functional analysis, the sheer diversity of social and economic conditions within an economy makes much of economic theory and, in particular macroeconomic theory, presumptive to the degree of being perverse.
This issue has been discussed elsewhere (see "Is there a problem?" - section 2 of the tutorial) but the inability of planners to take into account the real range of preferences of the economic constituency is the outcome of inappropriate analytical methods as well, of course, a lack of availability of reliable information.
In constitutional terms this also means that the political system which inacts economic legislation is not in fact aware of the preferences of their constituencies. Indeed, the political system does not seek to find out what these are but substitutes such a process by preferences conceived by political party policy workers. As a result preferences upon which the electorate are expected to vote are neither representative of real preferences of the electorate nor therefore do mandates reflect the real views of the electorate.
Locational-state theory
Locational-state theory is a methodology of data analysis which is focused on specificity of the state of any aspect of an individual or corporate entity. The need for such an analysis is of fundamental importance to a better understanding real incomes because the real income of any individual, or corporate entity, has unique dependencies depending upon the specific motivations and needs of individuals or those of the individuals who make up a corporate entity.
I am therefore adding locational-state considerations as a specific section of the tutorial in the form of an introduction to the topic. Locational-state theory will also be reviewed in greater detail in a monograph to be published by Hambrook Publishing Company "Locational-State Theory & Real Incomes" to be released in August 2008.
30th April, 2008.
Updated: 4th May, 2008.
Updated: 30th June, 2008 altering the release date of this publication. |
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