Tuesday, October 6, 2015

Economic Rates of Change

Not that I'm advocating mathematical economics, but as a mental exercise, why don't more economists make reference to rates of change in economic well-being?  Why aren't there extensive studies in everyday conversation that show, not just how policy affects change, but how policy affects rates of change over time.

A specific policy will affect prices, employment, capital accumulation or consuption, land/material use, etc. and all its "lengthening" or "shortening" the capital structure relative to those changes, over time.  Point being, i.e., employment could be on the rise, while the 2nd order derivative (acceleration, or momentum, or whatever physics corollary you choose) could have a negative impact.

No comments:

Post a Comment