A non-linear model of economic production processes

  • Ponzi A
  • Yasutomi A
  • Kaneko K
  • 4

    Readers

    Mendeley users who have this article in their library.
  • 4

    Citations

    Citations of this article.

Abstract

We present a new two phase model of economic production processes which is a non-linear dynamical version of von Neumann's neoclassical model of production, including a market price-setting phase as well as a production phase. The rate of an economic production process is observed, for the first time, to depend on the minimum of its input supplies. This creates highly non-linear supply and demand dynamics. By numerical simulation, production networks are shown to become unstable when the ratio of different products to total processes increases. This provides some insight into observed stability of competitive capitalist economies in comparison to monopolistic economies. Capitalist economies are also shown to have low unemployment. © 2002 Elsevier Science B.V. All rights reserved.

Author-supplied keywords

  • Economic dynamics
  • Evolutionary systems
  • Non-linear dynamics
  • Reaction networks

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

  • A. Ponzi

  • A. Yasutomi

  • K. Kaneko

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free