The theory of qualitative economic growth : a new framework for economic growth theory / Sergio Focardi and Frank J. Fabozzi.

Format:

Book

Author/Creator:

Focardi, Sergio M., author.

Fabozzi, Frank J., author.

Series:

Economic issues, problems and perspectives series.

Economic Issues, Problems and Perspectives Series

Language:

English

Subjects (All):

Economic development--Sociological aspects--Research.

Economic development.

Economic development--Mathematical models.

Quality of life--Economic aspects--Research.

Quality of life.

Complexity (Philosophy).

Physical Description:

1 online resource (184 pages)

Edition:

First edition.

Place of Publication:

New York : Nova Science Publishers, Inc., [2023]

Summary:

"This book develops the theory of qualitative growth. This theory provides a major overhaul of economic theory. Modern economies are evolutionary complex systems subject to a process of rapid innovation that makes aggregation very difficult. Mainstream economics is based on aggregating variables. When aggregation is impossible, mainstream economics creates idealized economies without any empirical basis. Our theory of qualitative growth is based on the principles of modern empirical science where models might include terms and variables that acquire meaning through global theory and its measurement processes. That is, in modern empirical sciences, variables are ultimately defined by the process of observation. However, the observation process might include the entire theory. For example, we do not observe temperature directly but only through instruments that exploit how temperature is linked to other variables such as the elongation of a column of mercury. We develop an integrated monetary economic model where the real economy is represented by hidden abstract variables that include quantity, quality, and generalized inflation. These variables do not have a direct observation process but are in relationship with observables such as the Economic Complexity Index. In this way, we develop an economic theory able to support decision making for qualitative growth while in contrast mainstream economics would label qualitative growth as a recession. The idea of qualitative growth, put forward by Capra and Henderson in 2009, is the basic notion that growth is a good and essential feature of human societies, but it must be understood as organic development of qualitative aspects of life. Qualitative growth responds to the basic need of "decoupling" growth from the use of natural resources which is now recognized as a pillar of the green transition"-- Provided by publisher.

Contents:

Intro

Contents

Preface

Acknowledgments

Chapter 1

A New Framework for Economic Growth Theory

Economies as Evolutionary Complex Systems

Models of Complex Systems

From Quantity to Value: Gross Domestic Product

Criticisms of GDP

Inflation, Nominal and Real Quantities

The Concepts of Quality

Applying the Global Approach of Empirical Sciences to Model Quality

Models Connect Observations

The Concept of Qualitative Growth

The Duality of Modern Economies

The Green Transition

Theory Risk

Chapter 2

Complexity and Quality in Modern Science

Is Science Purely Formal and Abstract?

Reductionism and Complex Systems

Physics and Qualities

Are Qualities Inevitably Related to Sentient Beings in Economic Systems?

Quality and GDP

Measuring the Quality of Life

Measuring the Quality of Output

Economics and Complex Systems

Measures of Complexity

Chapter 3

The Problem with Aggregation of Economic Output

Aggregation of Agents

Indexes

Aggregation of Goods

Single Good

Composite Goods

Heterogenous Goods and the Cambridge Controversy

Looking Forward

Reductionism and Complexity

Chapter 4

Inflation Is Not What You Think It Is

The Classic Concept of Inflation

Reconciling Households' Perception of Inflation with Its Overestimation

Why Inflation Is Not a Self-Regulating Phenomenon

Dynamics of Inflation

Why Is Inflation so Feared?

Shortcomings of the Classical Concept of Inflatio

Productivity Slowdown

How Can the Concept of Inflation Evolve

Chapter 5

Why Qualitative Growth Theory Is Needed

A Complexity-Based Approach to Decision Making

Why Do We Need a New Economic Framework Now?

Better Understanding of Growth, Expansion and Recession

Productivity

Inflation and Innovation.

Why Do We Need a New Economic Framework for the Green Transition?

Chapter 6

Models of Qualitative Growth

Theories and Models in Modern Science

Economic and Financial Models

Volatility

Regime-Switching Models

Factor Models

In Summary

Macroeconomic Models

Solow-Swan Model

The Predator-Prey Model, the Goodwin Model, and the Keen Model

Keen Model

Integrated Stock Flow Consistent Models

Summary

Modelling Quality and Complexity

Why Do We Need Abstract Variables in Macroeconomic Models?

How to Represent Quality, Quantity, and Generalized Inflation

Models

Measures of Complexity and Generalized Inflation

Chapter 7

Economies as Complex Systems

Networks as Complex Systems

Description of Networks

Types of Networks

Some Results of Complexity Theory

How Is Monetary Profit Generated?

How Is Complexity Measured?

How Can Economic Complexity Grow?

Are There Additional Segmentations of the Economy?

Chapter 8

Social and Economic Consequences of Qualitative Growth

The Birth of Growth

Growth Is Not an Observable

Misleading Advising

What Would Have Happened if Qualitative Evaluation Would Have Been Applied?

Warnings and Indifference

How to Obtain Decoupling

Chapter 9

Summary View of the New Economic Framework

References

Index of Names

Index of Terms

About the Authors

Blank Page.

Notes:

Description based on print version record.

Includes bibliographical references and index.

Other Format:

Print version: Focardi, Sergio The Theory of Qualitative Economic Growth: a New Framework for Economic Growth Theory

ISBN:

979-88-911-3141-5