From: glevy@PRATT.EDU
Date: Tue Oct 23 2007 - 08:32:16 EDT
> There is much to be said for simulations since these force one > to put forward explicit mechanisms for events, rather than > assuming the results of dynamical processes. > What vitiates Klimans approach is that although it is presented > as being dynamical, it actually provides not mechanism by which > one of its main dynamic effects - an equalisation of profit > rates is to be achieved. > As Ajit noted in a post a month or so ago, it is actually very > hard to specify any dynamical process that would produce such > an equalisation. As far as I know there are know simulation models > that produce it as a result as opposed to assuming it. Hi Paul C: I know of no economist who specializes in the field of non-linear dynamics who accepts the claim that TSSI models (or "illustrations") are in fact dynamic. Steve K has challenged them on this issue as has Barkley Rosser. They were challenged to "walk the walk" and actually present dynamic models well over a decade ago but have not risen to the challenge. The underlying problem here is that they want to cross-fertilize models developed in the context of "period analysis" with dynamic models without recognizing the inherent (non-dynamic) limitations of the former. In this sense, I think they *actually* present a model of comparitive statics similar to the 1970's Lowe (_The Path of Economic Growth_) and Hicks (_Capital & Time_) tradition. I.e. Lowe and Hicks also saw growth as a dynamic process but were unable to formally express that insight in their theory and present a truly dynamic model. Of course, non-linear dynamic theory has progressed a long ways since Hicks and Lowe wrote their books. In any event, although they saw growth as dynamic they were still expressing themselves in terms of equilibrium theory, steady-states, etc. For instance, the Lowe model incorporates a "dynamic equilibrium" process. This contrasts at least to the rhetoric of the TSSI. But, actual dynamic theory requires more than lip service and rhetoric - as any genuine non-equilbrium dynamic theorist will tell you. In solidarity, Jerry
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