“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

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

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James Tobin22
American economist 1918–2002

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“No matter how abstractly formulated are a general theory of systems, a general theory of evolution and a general theory of communication, all three theoretical components are necessary for the specifically sociological theory of society. They are mutually interdependent.”

Niklas Luhmann (1927–1998) German sociologist, administration expert, and social systems theorist

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“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.”

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“The most general form of systems theory is a set of logical or mathematical statements about all conceptual systems. A subset of this concerns all concrete systems. A subsubset concerns the very special and very important living systems, i. e., general living systems theory.”

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“Since it can be argued that both science and engineering are concerned with the study of real systems and their behavior, it follows that a general theory should be concerned with the study of general systems… It suffices for the present discussion to consider a general system as an abstract analogue or model of a class of real systems. General systems theory is then a theory of general models.”

Mihajlo D. Mesarovic (1928) Serbian academic

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“A later writer, such as Leijonhufvud, I knew to have it wrong, when he later argued the merits of Keynes’s subtle intuitions and downplayed the various (identical!) mathematical versions of The General Theory. The so-called 1937 Hicks or later Hicks–Hansen IS–LM diagram will do as an example for the debate.”

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Daniel Katz (1903–1998) American psychologist

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“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.”

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“An important object of the Journal should be the publication of papers dealing with attempts at statistical verification of the laws of economic theory, and further the publication of papers dealing with the purely abstract problems of quantitative economics, such as problems in the quantitative definition of the fundamental concepts of economics and problems in the theory of economic equilibrium.
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Ragnar Frisch (1895–1973) Norwegian economist

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Mihajlo D. Mesarovic (1928) Serbian academic

Mihajlo D. Mesarovic and Y. Takahare (1975) General Systems Theory, Mathematical foundations. Academic Press. Cited in: Franz Pichler, Roberto Moreno Diaz (1993. Computer Aided Systems Theory. p. 134

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