Keynes' principle of effective demand based on the Keynesian multiplier effect is mathematically wrong. The equilibrium solution of an initial state: 5=Y*=2/(1 - 3/5(=MPC)), which is correct. ΔG=investment fund. An incremental state: 5+ΔG = Y** = (2+ΔG) / (1 - 3/5). The multiplier effect formula: ΔG = ΔG/(1 -3/5). 2=5, which is incorrect. 5+ΔG=Y**= (2+ΔG) /(1-3/(5+ΔG)), which is correct.

Although Leontief's IO (input output) table is very useful, all the existing analytical results of the IO analysis for economies are mathematically wrong. The reason is that the correct solution for both the open model production equation and the price model equation should be joined to the single equation Y(=GDP)=H・V(=GVA), which is an Affine transformation.

Walras' general equilibrium (Walrasian equilibrium) in economies does not exist in capitalist societies from the existence of wisdom variables (desires for efficiency and extension) and the indeterminate relationship (Δfixed cost =ΔCm ,finite value≠0) between a labor volume and its wages. GVA in the past can be uniquely determined depending on the fact of GVA's generation, while GVA in the future cannot be determined as long as decision making will variables (e.g. dismissal, innovation and consumer confidence etc. ) are not determined.

Keynes' involuntary unemployment is caused by the conflict between ΔπO (incremental profit and loss) and the other items (wages in the case of GVA) in the equation ΔX =ΔDXm+ ΔCm (finite value≠0)+ ΔG + ΔπO in a given incremental decrease of ΔX (GVA=GDP) .

The logic of J.A. Shumpeter's innovation theory is mathematically shown.

The CVP analysis or the break-even analysis is easily possible in business accounting under standard costing or absorption costing.

Structural analysis for the Minami Bisan-Seto Bridge (suspension bridge) is introduced.


One may diagnose the individual through observing society.
One may diagnose society through observing the individual.
→Producing→Flowing→Digesting→Burning→Reproducing→
→Others/Exercise→Exchange/Flowing→Digestion→Burning/Efficiency→ →Bones/Reproduction→
→Competition/Collaboration→Exchange/Direction→Digestion/Self→
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Overview: Overview of the US Patent, 2013: Accounting Method and Accounting System

Contents

Prologue

Part 1: Management Accounting

§1 Derivation of the managed gross profit chart and the 45 degree break-even chart under absorption costing

§2 ACCOUNTING SYSTEM FOR ABSORPTION COSTING (U.S. Patent 2007 Summary)

§3 ACCOUNTING SYSTEM FOR ABSORPTION COSTING (U.S. Patent 2007 PDF)

§4 An actual example of the managed gross profit chart

§5 Supplementary explanations of the managed gross profit chart theory

§6 The cause of Solomons' error in his break-even chart for absorption costing

§7 Profit planning in standard costing ( →Chapter 3, Economics)

§8 Preparation for economics

§9 A New Method of Making Statement of Cash Flows for Economics (Japanese)

Part 2: Economics

Chapter 1: Examination of the Keynesian Multiplier Effect Theory

§1 Outline of the Examination of the Keynesian Multiplier Effect Theory

§2 Input-Output Table Chart in National Economic Accounts

§3 Examination of the Keynesian Multiplier Effect Theory

§4 Answers to My Questions for My Claim that the Keynesian Multiplier Effect Theory is Wrong

§5 Additional Examination

5.1 Economic effect of an increase or cut in taxes

5.2 Two kinds of economic charts in the national accounts or in business accounts

5.3 Behavior of a two-degrees of freedom system

5.4 A reconsideration of the ΔY1 = ΔI2 / (1 - MPC) chart problem

§6 A Flow-Chart to Disprove Errors in the Keynesian Multiplier Effect Theory

§7 Past Difficult Problems Related to Keynes's investment multiplier

§8 A Charting Method for an Economic Fluctuation Presented by the Author

§9 Examination of the Equilibrium Theory Method in Deriving the Investment Multiplier Effect Formula

9.1 The conventional derivation method for the investment multiplier effect formula using the equilibrium theory

9.2 The cause of the error in the conventional equilibrium theory method to derive the　investment multiplier effect formula

9.3 The significance of Keynes' principle of effective demand

9.4 Doubts about the equilibrium theory method produced by the derivation of Keynes's investment multiplier effect formula

Chapter 2: Presentation of a Cash Flow Matrix Analysis in Place of Leontief's Input-Output Analysis

Outline

§1 Development to Business Input-Output table (Japanese)

§2 Presentation of the Cash Flow Matrix (CF Matrix) Analysis for National Accounts and a Consideration of the Leontief Input Output Analysis Theory (PDF)

Chapter 3: Production theory in enterprises, industries and national accounts

Introduction: Production theory derived from the managed gross profit chart theory

§1 Profit Planning of an Enterprise Adopting Standard Costing (PDF)/h3>

-A Support of J.M.Keynes' Involuntary Unemployment-

§2 Production Theory to Analyze Human Wisdom and Global Phenomena Operations (PDF)

-A Disproof of Walras' General Equilibrium Theory-

Part3: Structural Mechanics

Structural Analysis of the Minami Bisan-Seto Bridge( Suspension Bridge)

Part4: Oriental Medicine

Approach to treating Ulcerative colitis (UC) and Irritable Bowel Syndrome (IBS) (Japanese)