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Non-Equilibrium Economics

Author

Listed:
  • Katalin Martinás

    (Department of Atomic Physics, Eötvös Loránd University, Budapest)

Abstract

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.

Suggested Citation

  • Katalin Martinás, 2006. "Non-Equilibrium Economics," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 4(2), pages 63-79.
    • Handle: RePEc:zna:indecs:v:4:y:2006:i:2:p:63-79
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    References listed on IDEAS

    as
    1. Robert U. Ayres & Katalin Martina, s, 1996. "Wealth accumulation and economic progress," Journal of Evolutionary Economics, Springer, vol. 6(4), pages 347-359.
    2. Stefan Baumgärtner, 2005. "Temporal and thermodynamic irreversibility in production theory," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 26(3), pages 725-728, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    equilibrium hypothesis; non-equilibrium economics; avoid the avoidable losses;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies

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