The Mises Community An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

# Any initial thoughts on modeling yet?

#### rated by 0 users This post has 2 Replies | 3 Followers

Posts 18
Points 270
Michael Joyner Posted: Thu, Dec 18 2008 9:40 PM

Any initial thoughts on modeling yet?

Even if done with sticks 'n stones

• Post Points: 35
Posts 7
Points 75
Michael S Costello replied on Thu, Jan 8 2009 3:00 PM

Reading Man Economy and State, perhaps some logical models will arrive in a flash.  As of yet, Rothbard seems to be establishing that you can't really model the order of percieved value with a mathematical value.  The values have to be ordinal but backed by a price range perhaps.

If and when I get around to doing something I imagine it will be a form of crusoe economy generator.  Best thing for this is to find a good example from a Rothbard speech and distill it into some logic.

Posts 55
Points 1,120
Warren Raftshol replied on Wed, Jun 15 2011 8:19 AM
I have done a modified Goodwin model based on the classical assumption that pQ = mV. I have posted some results at http://johanraft.wordpress.com The normal (wrong) assumption made in the Goodwin model is that Q = σK, with Q = physical output, K = physical capital and σ = constant. These assumptions give useless results. I show, however that since Q = mV/p that σ, the output/capital ratio is not constant but is a function of p, σ = σ(p) = V/p. Based on the href="http://financialminorityreport.com/index.php/2010/03/my-thoughts-on-the-diminisioning-productivity-of-debt/">marginal productivity of debt curve it can be inferred that V = 3 when p = 1 so that σ(p) = 3/p gives interesting empirical results.
Page 1 of 1 (3 items)