By Erwin Klein
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The set IS of intended applications of TS is a subset of MSW. Part II A Taxonomy of Economic Theories 4 A Taxonomy of Economic Theories Based upon Intended Epistemological Status and Pragmatic Function The body of contemporary theoretical economics is made up of an ever-increasing number of more or less interdependent individual theories with differentiated cognitive and operative functions. The main purpose of Part II is to devise and illustrate a classification of economic theories that would serve as a framework tentatively to accommodate the main results of this study to be developed in detail in Parts III and IV.
For an example of the second kind - an allocation theory for a world other than the empirical one - consider a socialist market economy (see Lange, 1938, and Heal, 1973). A socialist market economy E may be thought of as a structure consisting of a twice continuously differentiable social utility function u in / demands xh by m consumers, n profit-maximizing labour- or state-owned firms each represented by a twice continuously differentiable production function f^, a distributor agent h for each final demand h, a Central Planning Board (CPB), and a vector z of initial resources.
Black box and input-output theories, including theories of linear economic models; structural and autoregressive econometric systems. A list like the above one is, of course, by no means exhaustive and it will be the subject of perpetual change over time. Notice moreover that, when we refer to fields of research, we prefer to use the plural expression 'theories' rather than the singular one, 'theory'. This is in accordance with the notion of an axiomatic theory being a hypotheticodeductive system where the theorems are derived from a given axiom base.