A theory of economic cycles

Imre Dobos () and Istvan Abel

Society and Economy, 2018, vol. 40, issue 2, 169-184

Abstract: The theory of economic motion was András Bródy’s main interest. This paper presents a simplified framework of Bródy’s economics. His multi-sector production and price theory is based on the Marxian theory of value reinterpreted by using measurement considerations. Economic motion in this framework is driven by technology represented by the internal proportions of production, not by external shocks. Prices and proportions jointly determine the economic structure and its motion (duality of prices and volumes). We derive the laws of motion of production and use of goods (consumption and accumulation) based on technological accounting balances. These laws determine a cyclical pattern. Using numerical examples we demonstrate how external changes in technology and valuations are propagated in changing the cyclical pattern of motion.

Keywords: dynamic Leontief model; Bródy’s model; economic growth; equilibrium; economic cycles (search for similar items in EconPapers)
JEL-codes: D46 E32 (search for similar items in EconPapers)
Date: 2018
Note: Imre Dobos thanks the support of the Gambrinus Fellowship Programme of the TU Dortmund University, Germany. István Ábel is grateful for the support from the MTA-BGE Macroeconomic sustainability working group funded by the Office of Sponsored Working Groups of the Hungarian Academy of Sciences.
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.akademiai.com/doi/pdf/10.1556/204.2018.40.2.1 (application/pdf)
subscription

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aka:soceco:v:40:y:2018:i:2:p:169-184

Ordering information: This journal article can be ordered from
Akadémiai Kiadó Zrt., P. O. Box 245, H-1519 Budapest, Hungary
https://akjournals.com/

Access Statistics for this article

Society and Economy is currently edited by Szent-Iványi, Balázs

More articles in Society and Economy from Akadémiai Kiadó, Hungary
Bibliographic data for series maintained by Kriston, Orsolya ().