“In the first place, economic theory provides a comparatively detailed specification of the demand relationships for individual consumers' goods, but is by no means so specific about the system into which these relationships fit. It would be possible to close the system in very many ways, and the precise way selected would influence the regression estimates in a model involving simultaneous equations.”

—  Richard Stone

Source: Studies in the National Income and Expenditure of the United Kingdom, 1954, p. 295; as cited in: John Chipman (2013) Advanced Econometric Theory, p. 275

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Richard Stone11
British economist, Nobel Memorial Prize winner 1913–1991

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“In the second place, a system would involve more variables than those which may be supposed to enter into demand relationships, and so the preliminary work of estimating the necessary time series would also be increased. In the third place, in the simultaneous method of estimation the estimates of the original parameters come to depend on most of the remaining estimates, and so it is quite likely that they will have large sampling variances.”

Richard Stone (1913–1991) British economist, Nobel Memorial Prize winner

Studies in the National Income and Expenditure of the United Kingdom, 1954

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“L. Walras first formulated the state of the economic system at any point of time as the solution of a system of simultaneous equations representing the demand for goods by consumers, the supply of goods by producers and the equilibrium condition that supply equal demand on every market.”

Gérard Debreu (1921–2004) French economist and mathematician

Arrow, Kenneth J., and Gerard Debreu. " Existence of an equilibrium for a competitive economy http://cowles.econ.yale.edu/P/cp/p00b/p0087.pdf." Econometrica: Journal of the Econometric Society (1954): p. 265

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“L. Walras first formulated the state of the economic system at any point of time as the solution of a system of simultaneous equations representing the demand for goods by consumers, the supply of goods by producers and the equilibrium condition that supply equal demand on every market.”

Kenneth Arrow (1921–2017) American economist

Source: 1950s-1960s, "Existence of an equilibrium for a competitive economy." 1954, p. 265

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“With the publication of J. M. Keynes’s General Theory in 1936 and the mathematical formalizations of his theory by J. R. Hicks (1937) and others, the language of macro-economic theory became systems of simultaneous equations. These are general equilibrium systems of interdependence in the sense that the relationships describe an entire national economy, not just a particular industry or sector. The systems are usually not completely closed; they depend on exogenous parameters including instruments controlled by policy-makers. Seeking definite relationships of economic outcomes to policies and other exogenous variables, qualitative and quantitative, these models sacrifice detail and generality, limiting the number of variables and equations by aggregations over agents, commodities, assets, and time.”

James Tobin (1918–2002) American economist

Source: "Money and Finance in the Macro-Economic Process" (1982), p. 12

“The object of this paper is fivefold. The first objective is to derive a practical system of demand equations which possess properties usually considered desirable from the standpoint of elementary economic theory. The second is to consider the statistical problems involved in applying the system of equations. The third is to analyse the pattern of demand for consumers' goods in terms of this system on the basis of annual data relating to the United Kingdom over the years 1920-38. The fourth is to compare the results of this system, and systems like it, with the actual state of demand in 1900. Finally, the fifth is to compare the post-war structure of demand with what might be expected from the inter-war relationshipp under free-market condition.”

Richard Stone (1913–1991) British economist, Nobel Memorial Prize winner

Stone, Richard. " Linear expenditure systems and demand analysis: an application to the pattern of British demand http://www.jstor.org/discover/10.2307/2227743?uid=3738736&uid=2&uid=4&sid=21104302232953." The Economic Journal (1954): 511-527.

“General Systems Theory is a name which has come into use to describe a level of theoretical model-building which lies somewhere between the highly generalized constructions of pure mathematics and the specific theories of the specialized disciplines. Mathematics attempts to organize highly general relationships into a coherent system, a system however which does not have any necessary connections with the "real" world around us. It studies all thinkable relationships abstracted from any concrete situation or body of empirical knowledge.”

Kenneth E. Boulding (1910–1993) British-American economist

Source: 1950s, General Systems Theory - The Skeleton of Science, 1956, p. 197: Opening sentences

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“Incompatibility in a relationship is not about being different. Many differences are workable and can be easily accommodated in a relationship. In fact, many differences make people in a relationship even more compatible. Incompatibility is the condition of two things being different in a way that is specifically uncomplimentary to the degree that the specific difference makes them incapable of coexisting harmoniously.”

Teal Swan (1984) American spiritual teacher

Source: tealswan.com/quotes

“An organization is a subordinate system of a specific larger system, the cooperative system, whose components are physical, biological, and personal systems. The relations with other organizations… are outside this specific cooperative system. Other organizations are a part of the social environment of the organization. It is for this reason I have used the phrase "complex of organizations" rather than "system." Usually the most significant relationships of a unit organization are those with the specific cooperative system of which it is a part. It is this system which primarily and on the whole in most instances determines the chief conditions of the organization's existence.”

Chester Barnard book The Functions of the Executive

Source: The Functions of the Executive (1938), p. 98-99, footnote

“In a fundamental sense, Alchian's theory of economic organizations is different from those of Coase or Simon. He disavows an explicit model of individual choice… and… offers a system-level explanation of organizational emergence, structure, and survival that is largely independent of decision making at the micro level… Yet it is precisely this independence of a distinct model of choice that ultimately renders it compatible with the individualistic theories of both Coase and Simon….
Whether individuals optimize under uncertainty or satisfice under the more limiting conditions of bounded rationality…, Alchian's logic of natural selection, when grafted onto either approach, provides a powerful means of deriving and integrating expectations about individuals, organizations and systems. The result in either case is an approach that gains in scope and coherence, and that does so by remaining true to its underlying model of individual choice.”

Terry M. Moe (1949) American political scientist

Source: "The new economics of organization." 1984, p. 746-747; as cited in Eggertsson (1990; 56)

“Unfortunately, the word "system" has many colloquial meanings, some of which have no place in scientific discussion. In order to exclude such meanings, and at the same time provide a starting point for exposition we state the following definition:
A system is a set of objects together with relationships between the objects and between their attributes.
Our definition does imply of course that a system has properties, functions or purposes distinct from its constituent objects, relationships and attributes.”

Arthur D. Hall (1925–2006) American electrical engineer

Source: Definition of System, 1956, p. 18: Italics quote cited in: Thorbjoern Mann (1992) Building Economics for Architects. p. 140

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