IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpdc/0502001.html
   My bibliography  Save this paper

Application of Method of Systems Potential in Economics

Author

Listed:
  • Grigorii Pushnoi

Abstract

It is proposed to consider the business cycle as hysteresis loop with fluctuating limiting points. Concept is based on the Method of System Potential, (Proceedings of International System Dynamics Conference 2003, No.56) which describes dynamics of spontaniously arising Complex Systems as the process of realization of some its inner propertiy of such Systems, so-called the 'Potential of a System'. Quasi-periodical dynamics of the 'index of efficiency' of such systems outcome from 'evolution equations' of the Method. Dynamics of Economic System is analized on the basis of this general system approach. Quasi-periodical cycle consists of two phases of gradual growth and two jumps – upward and down ward. Every such jump means mathematical catastrophe. The surface of this catastrophe is analyzed. It is proposed consider cyclical evolution of a System as a process of its qualitative refreshment. This method as applied to Economic System allows explaining some properties of the typical business cycle established by W. C. Mitchell (NBER) with respect to duration of different phases of the cycle. The Method as applied for quantitative analysis of U.S. Economic dynamics in 1922-1949 gives advance understanding of Great Depression of 1930’s.

Suggested Citation

  • Grigorii Pushnoi, 2005. "Application of Method of Systems Potential in Economics," Development and Comp Systems 0502001, EconWPA.
  • Handle: RePEc:wpa:wuwpdc:0502001
    Note: Type of Document - pdf; pages: 35. pdf-file
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/dev/papers/0502/0502001.pdf
    Download Restriction: no

    More about this item

    Keywords

    economical potential; Great Depression; catastrophe; business cycle; complex system dynamics;

    JEL classification:

    • N - Economic History

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpdc:0502001. 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: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.