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Capitalism, Economic Political and slow and fast variables

Author

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  • Loreno Cecconi

Abstract

In this paper we analyze the problem of the intensity and the diffusion times in the macroeconomic system of the measures of political economic by the Government, focusing on those indirect. We try to show how these effects and diffusion speedy depend crucially on the behaviour of economic agents which often act independently of each other looking for maximum personal gain. The conflicting nature of the capitalistic economic system does not allow us to make specific predictions about the effectiveness of such measures, as the Government has little capacity to control over the actions of private agents. So, nothing can be said before if the objectives that the Government is pursuing will be achieved. A typical example, is the use of instruments controlling the levels of environmental pollution, against which we nourish a latent skepticism. To show our caution, we use the concept of complex system composed of sub-systems connected to each other through relationship of a non-linear mathematical form which is often unknown. We also use the concept of synergetic and the principle of slow and fast variables (slaving principle). In particular, we also show that, when the evolution of a sub-system is logistical, it can give rise to the chaotic dynamics that may extend to other sub-systems and to the overall system. Our arguments are based also by the use of some models expressed, in most case, in the form of differential equations.

Suggested Citation

  • Loreno Cecconi, 2016. "Capitalism, Economic Political and slow and fast variables," Department of Economics University of Siena 726, Department of Economics, University of Siena.
  • Handle: RePEc:usi:wpaper:726
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    File URL: http://repec.deps.unisi.it/quaderni/726.pdf
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    References listed on IDEAS

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    1. Giancarlo Gandolfo, 2016. "International Finance and Open-Economy Macroeconomics," Springer Texts in Business and Economics, Springer, edition 2, number 978-3-662-49862-0, August.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
    3. Medio,Alfredo & Gallo,Giampaolo, 1995. "Chaotic Dynamics," Cambridge Books, Cambridge University Press, number 9780521484619.
    4. Shone,Ronald, 2002. "Economic Dynamics," Cambridge Books, Cambridge University Press, number 9780521017039.
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    More about this item

    Keywords

    Government measures. Reaction coefficient. Speed of diffusion. Complex system and sub-systems. Interconnection between sub-systems and the principle of Synergetic. Slow and fast variables. Capitalistic structure and social conflict. Chaotic dynamics. Differential equation. Stability and instability of equilibrium points. Environmental pollution; carbon tax and subsidies;

    JEL classification:

    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • P1 - Political Economy and Comparative Economic Systems - - Capitalist Economies
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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