Modeling economic forces, power relations, and stock-flow consistency: a general constrained dynamics approach

Oliver Richters and Erhard Glötzl

Journal of Post Keynesian Economics, 2020, vol. 43, issue 2, 281-297

Abstract: We present a differential-algebraic equation framework of constrained dynamics to implement monetary Stock-Flow Consistent (SFC) models. Agents exert forces on the variables according to their desire, for instance to gradually improve their utility. The parameter ‘economic power’ corresponds to their ability to assert their interest. In analogy to Lagrangian mechanics, system constraints from accounting identities generate additional constraint forces that lead to unintended dynamics. We exemplify the procedure using a simple SFC model and reveal its implicit assumptions about power relations and agents’ preferences.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://hdl.handle.net/10.1080/01603477.2020.1713008 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Modeling economic forces, power relations, and stock-flow consistency: a general constrained dynamics approach (2018)
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:mes:postke:v:43:y:2020:i:2:p:281-297

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/MPKE20

DOI: 10.1080/01603477.2020.1713008

Access Statistics for this article

More articles in Journal of Post Keynesian Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().