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Theoretical Gaps: How Existing Theories Fall Short When Assumptions Change
Book chapter

Theoretical Gaps: How Existing Theories Fall Short When Assumptions Change

Policy and Political Theory in Trade Practice: Multinational Corporations and Global Governments, pp.13-21
Palgrave Macmillan US
2014

Abstract

Additional Unit Brand Loyalty Creative Destruction Demand Curve Political Theory
Because of the changes outlined in Chapter 1, an examination is offered of the assumptions behind historic economic theoretical models. Those models are still employed to prescribe policy for eliciting future economic impact today. Therefore, when their assumptions are violated the implementation of the proposed policies could have unintended consequences. A discussion is offered of their prescriptive powers that fall short in predicting the main economic occurrences of the recent past.

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