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

Author

Listed:
  • Miguel Alvarez Texocotitla
  • M. David Alvarez Hernandez
  • Shani Alvarez Hernandez

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.

Suggested Citation

  • Miguel Alvarez Texocotitla & M. David Alvarez Hernandez & Shani Alvarez Hernandez, 2018. "Dimensional Analysis in Economics: A Study of the Neoclassical Economic Growth Model," Papers 1802.10528, arXiv.org.
  • Handle: RePEc:arx:papers:1802.10528
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    References listed on IDEAS

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

    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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