Intensive quantities in an economy and conjugate variables (Q382366)
From MaRDI portal
scientific article
Language | Label | Description | Also known as |
---|---|---|---|
English | Intensive quantities in an economy and conjugate variables |
scientific article |
Statements
Intensive quantities in an economy and conjugate variables (English)
0 references
18 November 2013
0 references
Using the simplest economic planning problem as an example, the author shows that the intensive variables (such as prices, interest or exchange rate; compare with goods, resources and money which are extensive variables) arise naturally as conjugate variables to balance constraints, under the decomposition of the planning problem into the problem of the dynamical equilibrium of an economy.
0 references
Ramsey problem
0 references
economic dynamics
0 references
optimization
0 references