Sunday, January 15, 2012

Notes on Systems Theory in Economics

The Economic systems of Governments and People are studied by their in situ participants. In some moments, political demands on Economic theory, measurement and analysis may become so dramatic as to appear to overwhelm the independence of science from metaphysics. Let's call this the Subjective Dynamic. The Subjective Dynamic is a feedback channel into the Economy through Politics and Government from People. It is independent of the objective processes that are marked by theory, measurement, and analysis.

The Economic activities of People and Government have many forms, from individual to incorporations. For example, the development of many open source products are performed by individuals acting independently as well as individuals acting within an incorporated purpose. These distinctions are blurred as the structures of incorporated purposes vary broadly from formal to informal. Therefore a model is free to regard the incorporated purpose as a property of People or activity, or both, or as variations on the chartered entity from history.

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