Wednesday, July 13, 2016

List of standard economics derived from information equilibrium

Here is a (possibly incomplete, and hopefully growing) list of standard economic results I have derived from information equilibrium. It will serve as a reference post. This does not mean these results are "correct", only that they exist given certain assumptions. For example, the quantity theory of money is only really approximately true if inflation is "high". Another way to say this is that information equilibrium includes these results of standard economics and could reduce to them in certain limits (like how quantum mechanics reduces to Newtonian physics for large objects).

In a sense, this is supposed to serve as an acknowledgement (or evidence) that information equilibrium has a connection to mainstream economics ... and that it's not completely crackpottery.

Supply and demand

Price elasticities

Comparative advantage

AD-AS model


Quantity theory of money

Cobb-Douglas functions

Solow growth model

The Kaldor facts as information equilibrium relationships

Gravity models

Utility maximization

Asset pricing equation

Euler equation

DSGE models


Mundell-Fleming as Metzler diagram


"Econ 101" effects of price ceilings or floors

Cagan model

Lucas Islands model

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Also, try to avoid the use of dollar signs as they interfere with my setup of mathjax. I left it set up that way because I think this is funny for an economics blog. You can use € or £ instead.