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Dimensional Analysis in Economics: A Study of the Neoclassical Economic Growth Model

Author

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  • Miguel Alvarez Texocotitla
  • M. David Alvarez-Hernández
  • Shaní Eneida Alvarez-Hernández

Abstract

The fundamental purpose of the present research article is to introduce the basic principles of dimensional analysis in the context of the neoclassical economic theory, in order to apply such principles to the fundamental relations that underlay most models of economic growth. In particular, basic instruments from dimensional analysis are used to evaluate the analytical consistency of the neoclassical economic growth model. The analysis shows that an adjustment to the model is required in such a way that the principle of dimensional homogeneity is satisfied. JEL: A12, C02, C65, O40

Suggested Citation

  • Miguel Alvarez Texocotitla & M. David Alvarez-Hernández & Shaní Eneida Alvarez-Hernández, 2019. "Dimensional Analysis in Economics: A Study of the Neoclassical Economic Growth Model," Journal of Interdisciplinary Economics, , vol. 32(2), pages 123-144, July.
  • Handle: RePEc:sae:jinter:v:32:y:2019:i:2:p:123-144
    DOI: 10.1177/0260107919845269
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    References listed on IDEAS

    as
    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    2. Samuelson, Paul A, 1972. "Maximum Principles in Analytical Economics," American Economic Review, American Economic Association, vol. 62(3), pages 249-262, June.
    3. Baiocchi, Giovanni, 2012. "On dimensions of ecological economics," Ecological Economics, Elsevier, vol. 75(C), pages 1-9.
    4. David Cass, 1965. "Optimum Growth in an Aggregative Model of Capital Accumulation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(3), pages 233-240.
    5. Mark Blaug, 1998. "The Problems with Formalism," Challenge, Taylor & Francis Journals, vol. 41(3), pages 35-45, May.
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    More about this item

    Keywords

    Dimensional analysis; mathematical economics; economic growth models; econophysics;
    All these keywords.

    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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