Disequilibrium Economics And Development
The 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.
|Date of creation:||05 Jul 2000|
|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
References listed on IDEAS
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.
- Brock, W.A., 1991. "Understainding Macroeconomic Time Series Using Complex Systems Theory," Working papers 9111, Wisconsin Madison - Social Systems.
When requesting a correction, please mention this item's handle: RePEc:sce:scecf0:377. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.