Description
Book SynopsisThis book approaches economic problems from a systems thinking and feedback perspective. By introducing system dynamics methods (including qualitative and quantitative techniques) and computer simulation models, the respective contributions apply feedback analysis and dynamic simulation modeling to important local, national, and global economics issues and concerns. Topics covered include: an introduction to macro modeling using a system dynamics framework; a system dynamics translation of the Phillips machine; a re-examination of classical economic theories from a feedback perspective; analyses of important social, ecological, and resource issues; the development of a biophysical economics module for global modelling; contributions to monetary and financial economics; analyses of macroeconomic growth, income distribution and alternative theories of well-being; and a re-examination of scenario macro modeling.
The contributions also examine the philosophical differences between the economics and system dynamics communities in an effort to bridge existing gaps and compare methods. Many models and other supporting information are provided as online supplementary files. Consequently, the book appeals to students and scholars in economics, as well as to practitioners and policy analysts interested in using systems thinking and system dynamics modeling to understand and improve economic systems around the world.
"Clearly, there is much space for more collaboration between the advocates of post-Keynesian economics and system dynamics! More generally, I would like to recommend this book to all scholars and practitioners interested in exploring the interface and synergies between economics, system dynamics, and feedback thinking."
Comments in the Foreword by Marc Lavoie, Emeritus Professor, University of Ottawa and University of Sorbonne Paris Nord
Trade Review“This volume is a phenomenal achievement. It offers something to both the neophyte and the experienced SD researcher … . Weighing in at almost 600 pages, it is a wealth of information, and the bibliographies are extensive. The fact that the illustrations are full color is a tremendous help. If we are to make SD more widely acceptable, this is the sort of effort that is necessary. I hope it is widely read. I highly recommend this volume.” (John T. Harvey, System Dynamics Review, Vol. 37 (4), 2021)
Table of ContentsChapter 1. Introduction to Feedback Economics.- Part I: Macroeconomics.- Chapter 2. Get Started with Macro Modeling.- Chapter 3. Equilibrium, Instability, Growth and Feedback in Economics.- Chapter 4. Accounting System Dynamics Modeling of Money Stock as Debts: Theory and Case Analysis of Japan.- Chapter 5. A System Dynamics Translation of the Phillips Machine.- Part II: Microeconomics.- Chapter 6. Economic Origins of the Sicilian Mafia: A Simulation Feedback Model.- Chapter 7. Comparison of System Dynamics Calibration and Econometric Estimation.- Chapter 8. Modeling the “Paradox of Redistribution”.- Part III: Resource Economics.- Chapter 9. Limits to Growth Concepts in Classical Economics.- Chapter 10. Development of a Biophysical Economics Module for the Global Integrated Assessment Model WORLD7.- Chapter 11. System Dynamics Modelling of Ecological-Economic Systems.- Chapter 12. Blessing or Burden? Another Look at the National Resource Curse.- Part IV: Policy Analysis.- Chapter 13. Policy Responses to Sovereign Debt Induced Banking Crises: A Model-Based Evaluation of Alternatives.- Chapter 14. Use of System Dynamics for Macro-Financial Scenario Assessment: Debt and Currency Crises in Russia.- Chapter 15. Economic Impact Assessment of Raw Material Efficiency.- Chapter 16. Insights on Profit Sharing and Jobs Creation in Bi-dimensional Goodwinian Models.- Part V: Variations and Reflections.- Chapter 17. Behavioral Expectation Formation and the Knife Edge: Another Look at Harrod.- Chapter 18. Burying Samuelson’s Multiplier-Accelerator and resurrecting Goodwin’s Growth Cycle in Minsky.- Chapter 19. Extending the Boundaries of Feedback Economics to Well-Being: An Interlinked Thinking Approach.- Chapter 20: A System Dynamics Scenario Model of the New Zealand Economy: Review and Reflections after 25 Years
