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Re: pipeline



At 14:07 16.07.02 -0500, William B. Ryan wrote:

>The macroeconomy may be modeled as a dynamic network of differentially
>expanding pipelines.

I agree with the intention of this. But it is a much better analogy to
employ interconnected vessels with fixed outlet apertures, instead of
"differentially expanding pipelines" . This -- which is very much in the
spirit of early fifties A.W. Phillips -- among other things gives a very
pertinent representation of both money velocity and liquidity preference.

Se pp. 3 - 5 of
http://csf.Colorado.EDU/authors/Andresen.Trond/system-econ.pdf

or for a more comprehensive and recent treatment, put together for
a seminar,
http://www.itk.ntnu.no/ansatte/Andresen_Trond/dwnld/uts-paper-1200.pdf

(The first part of the latter paper is published in
MODELING, IDENTIFICATION AND CONTROL, vol. 19 no. 4, 1998.)


Trond Andresen
Norway







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