NON-EQUILIBRIUM ECONOMICS

Katalin Martinás1

1Department of Atomic Physics, Eötvös Loránd University,
  Budapest, Hungary

Received: 15 October, 2006. Accepted: 2 January, 2007.

SUMMARY

A microeconomic, agent based framework to dynamic economics is formulated in a materialist approach. An axiomatic foundation of a non-equilibrium microeconomics is outlined. Economic activity is modelled as transformation and transport of commodities (materials) owned by the agents. Rate of transformations (production intensity), and the rate of transport (trade) are defined by the agents. Economic decision rules are derived from the observed economic behaviour. The non-linear equations are solved numerically for a model economy. Numerical solutions for simple model economies suggest that the some of the results of general equilibrium economics are consequences only of the equilibrium hypothesis. We show that perfect competition of selfish agents does not guarantee the stability of economic equilibrium, but cooperativity is needed, too.

KEY WORDS

equilibrium hypothesis, non-equilibrium economics, avoid the avoidable losses


CLASSIFICATION

PACS: 01.40.gb, 01.55.+b


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