Why Forrester Wished to Replace Both Differential Equations and Economics?

21 Pages Posted: 4 Nov 2020

See all articles by Khalid Saeed

Khalid Saeed

Worcester Polytechnic Institute (WPI)

Date Written: September 14, 2020

Abstract

While many eminent economists have expressed disdain about the abstract nature of contemporary economic theory and how it is removed from reality, few offer a cogent solution to this problem. Jay Forrester, a control engineer turned economist proposed replacing the abstract economic model with a manager-based construct. He also aspired to replace differential equations with an intuitive integration process that can be implemented on a digital computer. This paper attempts to understand how economic theory separated from reality and how modeling using Forrester’s intuitive calculus can make it verifiable and operational.

Keywords: Economics, System Dynamics, Managerial Economics, Jay Forrester, Rational Agency, Expectations, Bounded Rationality

Suggested Citation

Saeed, Khalid, Why Forrester Wished to Replace Both Differential Equations and Economics? (September 14, 2020). Available at SSRN: https://ssrn.com/abstract=3692759 or http://dx.doi.org/10.2139/ssrn.3692759

Khalid Saeed (Contact Author)

Worcester Polytechnic Institute (WPI) ( email )

100 Institute Road
Worcester, MA 01609
United States

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