A Simple Linear Algebraic Approach to Capture the Dynamics of the Circular Flow of Income

2023/07/06 by Guergachi, Aziz, Hakim, Javid
#FOS: Economics and business #General Economics (econ.GN)

paper · doi:10.48550/arxiv.2307.02713

Abstract

This article has one single purpose: introduce a new and simple, yet highly insightful approach to capture, fully and quantitatively, the dynamics of the circular flow of income in economies. The proposed approach relies mostly on basic linear algebraic concepts and has deep implications for the disciplines of economics, physics and econophysics.

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