Epstein Secrets

o produce a simple Lotka-Volterra macroeconomic model. This basic model generates endogenous boom and bust business cycles of the sort described by Minsky and Austrian economists. From this model an exact formula for the Bowley ratio; the ratio of returns to labour to total returns, is derived. This f

rom top to bottom. But this still results in a distribution with a large bias giving most of the wealth to a minority of individuals. Going back to the Lotka-Volterra and GLV models discussed in section 1.2, it is better to abandon the predator-prey model of foxes killing rabbits, and instead think in terms of a '

al unproductive. This then generates a downswing of declining wealth, consumption and wages. This is the normal cycle of capitalism as described by Minsky and the Austrians. Booms and busts are endogenous. Free markets are not inherently stable. Again, as with the income and company models it noticeab

this is a chaotic model, not a stochastic one. There is no stochasticity in this model. All fluctuations in the model are created endogenously from the Lotka-Volterra like differential equations in the model. Figure 4.3.4 shows the detail of couple of cycles. Figure 4.3.4 here These are real live Minskian / Aus

ge payments to rents. The macroeconomic models in section 4 above suggest that liquidity can be formed endogenously, in exactly the way proposed by Minsky. This suggests that, just as central banks are expected to control changes in the money supply caused by fractional reserve banking, it seems appro

al and ecological scientists have the right mathematical tools for creating a radical and effective new economics, both specifically in the form of the Lotka-Volterra and maximum entropy production models, and more generally in their understanding of complex inter-related evolving systems. Ultimately this maths f