Is There a Mathematical Model for Growth in a Free Market Economy?

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Discussion Overview

The discussion revolves around the existence of mathematical models for growth in a free market economy, specifically in the context of scenarios without state intervention. Participants explore various economic theories and models that may apply to this topic.

Discussion Character

  • Exploratory, Technical explanation, Debate/contested

Main Points Raised

  • One participant inquires about mathematical models for growth in a free market economy without state intervention.
  • Another participant suggests that the Austrian school of Economics might provide some insights, though they acknowledge the speculative nature of this suggestion.
  • A different participant mentions the Solow-Swan model, noting that while it does not specifically address free markets, it discusses mechanisms like savings, capital accumulation, and technological progress that can occur without direct government intervention, while also recognizing the need for some government roles.
  • A later reply questions the specific aspects of growth the original poster wishes to model, indicating that the approach may vary based on the focus of the model.

Areas of Agreement / Disagreement

Participants do not reach a consensus on a specific model, and multiple competing views regarding the applicability of different economic theories remain present in the discussion.

Contextual Notes

There is a lack of clarity on the specific parameters or definitions of "free market" and "growth" that participants are using, which may affect the applicability of the models discussed.

LayMuon
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Hi guys, I am not economist, but can anybody tell me whether there is a mathematical model for growth in free market economy without state intervention? Where can I look them up? Thanks.
 
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This is kind of temptative, i.e., somewhat-speculative, so you should ignore if someone comes up with something more substantial, but, from what I know, the Austrian school of Economics may give you a lead.
 
Solow-Swan model. Although it doesn't really refer to free markets, the mechanisms which make long-term growth happen are savings, capital accumulation and technological progress, which can happen with no direct government intervention. Of course there has to be a government enforcing the law, trust policies and to facilitate new investment, etc..
 
LayMuon:
What exactly do you want to model? (Because Tosh suggested a reasonable, simple answer, which for example ignores short term swings)
 

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