Why Forrester Wished to Replace Both Differential Equations and Economics?
21 Pages Posted: 4 Nov 2020
Date Written: September 14, 2020
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
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