Volume 9, Issue 3 - Tribute to Martin Shubik

Accounting both for macro and microeconomic purposes deals with process and dynamics. Much of the best microeconomic theory has dealt only with statics. General equilibrium theory shows the virtues of a price system, but abstracts from price formation and all of the accounting problems which appear in disequilibrium. An approach is suggested here for reconciliation of accounting with general equilibrium. More generally, it is suggested that the importance of accounting to economic theory has been underestimated.

We mourn the loss of Martin Shubik (1926–2018), a gifted scholar and a dear friend. Through his remarkable ideas and insights, Shubik helped founding and shaping the CONVIVIUM with his guidance, advice, and inaugural contribution “Accounting and Economic Theory: Past, Present, and Future” (DOI: https://doi.org/10.2202/2152-2820.1012). At the time of his passing on August 22, 2018, editorial work on this symposium on his last book with Eric Smith, ‘The Guidance of an Enterprise Economy’ , has been underway. It is now published to honour him and his outstanding contributions to economics, management science, game theory, and accounting scholarship. This article summarizes these contributions through his lifetime work.

This article describes some of the amazing insights developed by Martin Shubik about the economics of money, trading and liquidity by commenting on his 2016 book with Eric Smith, The Guidance of an Enterprise Economy.

Many economic theories rely on equilibrium. Notwithstanding its widespread framing role, the very notion of equilibrium shows epistemic and methodological limits when confronted with space, time, human behaviour and institutions. A systemic perspective may upgrade equilibrium by considering the featuring roles of economic organisation (entity), money and accounting in the economic process. This article tributes to Martin Shubik’s scholarship and friendship by providing a systemic perspective on his last co-authored book with Eric Smith.