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
19-03-2018: Optimization of the growth
Author: E.A. Bakkum
In many columns it has been explained how the Leninist planning agency chooses the optimal growth path, usually by means of intertwined matrices. The western economists commonly prefer to calculate the growth path by means of dynamic one-sector models. The present column describes an optimization model of the Dutch economist Jan Tinbergen, from his book Mathematical models of economic growth. The model is based on a utility function. Tinbergen concludes that such models can not determine the optimal growth, because as yet there is a lack of realistic utility functions .... Read more
02-03-2018: The use value of a product
Author: E.A. Bakkum
An essential question in economics concerns the measurement of the utility of a product. The present column describes two approaches, which both attempt to solve this problem. The first one refers to the use value and the target function in the Leninist paradigm. It stems from Miroslav Toms in his book Der Gebrauchswert und seine Messung. The second one refers to the subjective utility function of the neoclassical theory. It is developed by Bernard van Praag in his book Individual welfare functions and consumer behavior .... Read more
20-02-2018: The motivation for work
Author: E.A. Bakkum
This column surveys the present knowledge with regard to the motivation for work. First, it will be explained how the modern labour economics models the motives. Here the wage and the income are essential. Next some alternative sources for motivation are discussed, as presented in the human resource management. The results are compared with the happiness economics, as presented by B.M.S. van Praag. Finally, the marxist criticism is discussed .... Read more