NEUMANNIAN ECONOMY IN
INVESTIGATION OF STABILITY AND
INSTABILITY IN ECONOMIC GROWTH
Katalin MartinásDepartment of Atomic Physics, Eötvös Loránd Technical University
Presented at CSNSS'03.
Axiomatic foundation of non-equilibrium microeconomics is outlined. The 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 the Neumannian economy. The emergence of the equilibrium market structure appears as an order out of chaos process.
economics, irreversibility, growth, chaos
Full paper as pdf version.