Since the beginning this portal has presented many models for calculations of the macroeconomic national dynamics. The present column addresses two themes, which were not yet discussed, namely the influence of the prices and the influence of the foreign trade. It is true that the price system has been explained by the theory of Sraffa, but she is hardly capable of modelling dynamical behaviour. The Dutch economist Jan Tinbergen has made several proposals to extend the Harrod-Domar model with a price effect. The inclusion of the foreign trade is essential for the modelling of a state, that disposes of an open economy .... Read more
15-06-2018: Multi-sector growth models with intertwined monetary matrix
Author: E.A. Bakkum
In a series of recent columns growth models from the book Mathematical models of economic growth by Jan Tinbergen have been described. It always concerns simple models, with one or two sectors. In the present column multi-sector models will be described, which moreover contain formulas for the exchange of production factors between sectors. Besides here each sector can produce investment- or capital-goods. Notably the model of Feldman and the fundamental model of the dynamic intertwined balance are discussed again .... Read more
09-06-2018: Two-sector growth models
Author: E.A. Bakkum
After the discussions of various types of one-sector models in the previous columns, the present column studies two-sector models. They originate again from the book Mathematical models of economic growth by Jan Tinbergen. These models allow to study the economic structure, just like the theory of Sraffa. Thus the path of balanced growth can be found. Moreover, the utilization of the production capacity can be optimized .... Read more
15-05-2018: One-sector growth models with production functions
Author: E.A. Bakkum
Now that a previous column has succinctly explained production functions, the present column will present several macro-economic growth models from the book Mathematical models of economic growth of the well-known Dutch economist Jan Tinbergen. A relation will be derived between the growth rates of the economic variables (capital, labour, technical development). The starting point is the Cobb-Douglas production function. The situation with complementary factors is also studied .... Read more
02-05-2018: Dynamics in macro-economic production functions
Author: E.A. Bakkum
Until now this webportal has somwhat neglected the neoclassical production theory. The present column makes up for this omission by describing the micro-economic theory of production functions. Essential concepts such as the complementarity and the substitution of production factors are explained. The isoquant is introduced, as well as the occurrence of various types of scaling effects. The problems of macro-economic production functions, such as in the model of Solow, are addressed .... Read more
24-04-2018: One-sector models with scarce capital
Author: E.A. Bakkum
Two years ago this web portal discussed two dynamic one-sector models, which have been used in the planning activities of the former Leninist economies. In fact these are difference versions of the Harrod-Domar model, which use time dependent structure parameters. This makes the models completely dynamical. In the present column several planning instruments of the famous Dutch economist Jan Tinbergen will be explained, also based in the Harrod-Domar model. His planning models take into account the delays in investment and the replacements .... Read more
12-04-2018: The homo economicus
Author: E.A. Bakkum
All kinds of motives affect the economic activities. Economics and notably the neoclassical theory try to simplify the complex of motivations as much as possible. Often the ideal-type of the homo economicus is used, in despite of the many objections. The present column shows why this assumption is not realistic. Notably the importance of group actions and the accompanying morals or ethics are discussed .... Read more