By Vladimir N. Pokrovskii
In this booklet the idea of social construction is systematically formulated in phrases and ideas of classical political financial system and neo-classical economics. during this method the topic turns into available not just to specialist researchers in components of the speculation of construction and monetary progress, but additionally to the proficient reader who's considering the foundations in the back of the functioning of a countrywide financial system. The publication might be regarded as an advent for college students with a heritage in physics, chemistry and engineering, who desire to focus on economics. it's defined how the expansion of creation is hooked up with achievements in technological intake of labour and effort. the speculation permits one to examine the previous and the current of the social creation process and to construct scripts of the longer term growth. The publication may be fascinating for strength experts who're engaged in making plans and analysing creation and intake of strength companies and making a choice on strength coverage, and for economists who need to know how strength and expertise are affecting monetary growth.
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Extra resources for Econodynamics: The Theory of Social Production
1 depicts the real change of production of value with a constant money scale, which is introduced in Chap. 10 (Sect. 3). The ratio of the output in the current money units to the output in the constant purchasing power money units defines the price index ρ(t) = Yˆ /Y. S. 0192t . —the dollar—decreases as an inverse quantity. Each holder of the dollar in 1950–2000 has been losing annually nearly 2% of its purchasing capacity, which is, in fact, an implicit tax in favour of an emitter. In the third chapter, we shall return to the discussion of money units and price index.
1 Neglecting fluctuations, which are the accidental deviations of quantity from some mean value, one defines the value of a unit of a product in arbitrarily chosen units as its price. We assume that the prices, as empirical estimations of value, for all products are known pi , i = 1, 2, . . , n. The price of a product is not an intrinsic characteristic of the product. The price depends on the quantities of all products which are in existence at the moment. As a rule, the price decreases if the quantity of the product increases, though the situation can be more complicated.
It is possible to allocate a part which is used for operating various adaptations allowing substitution of labour efforts by work of the production equipment. This quantity can be called primary substitutive work EP . True substitutive work or productive energy P , which really replaces workers’ efforts, is a small part of the consumed primary productive energy EP , and the coefficient of efficiency P /EP depends on exploited technology. In the United States in the beginning of 60th years, for example, in general consumption nearly 5 · 1019 J, about a third of all consumed energy, went to substitution of labourers’ work.
Econodynamics: The Theory of Social Production by Vladimir N. Pokrovskii