Disequilibrium Economics And Development
AbstractThe history of Economic Theory shows in several stages the influence of Thermodynamics. The analogies between economic systems and thermodynamic systems are at the same time quite obvious and misleading. Important thermodynamic notions lack of counterparts in Economics, making the goal of transferring concepts -other than the trivial analoges- from one discipline to the other an epistemological dead end. The transference of formal devices, instead, became a feasible goal. Procedures like comparative statics were imported directly from thermodynamics, making possible to relate equilibria in economic systems to properties of their environments.Continuing that tradition we claim that it would be profitable for Economics to borrow formalisms from Open Systems Theory, the not yet well defined set of extensions of Thermodynamics to the analysis of open systems. These methods have been applied in several sciences to study the behavior of systems away from equilibrium. In this paper we discuss briefly the epistemological rationale for this claim and present a model that cannot be analyzed in classical terms as to show how the tools of O.S.T. can be applied in order to represent the relevant economic phenomenon of development.The non-linear interaction among different sectors of an economy may explain how spillover effects make the entire system either grow or fall. After a transient with fluctuations a sustained development process may arise. In our model we show how this can happen.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2000 with number 377.
Date of creation: 05 Jul 2000
Date of revision:
Contact details of provider:
Postal: CEF 2000, Departament d'Economia i Empresa, Universitat Pompeu Fabra, Ramon Trias Fargas, 25,27, 08005, Barcelona, Spain
Fax: +34 93 542 17 46
Web page: http://enginy.upf.es/SCE/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brock, William A., 1991.
"Understanding macroeconomic time series using complex systems theory,"
Structural Change and Economic Dynamics,
Elsevier, vol. 2(1), pages 119-141, June.
- Disequilibrium (economics) in Wikipedia English ne '')
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.