Drews Institutionalized Divvy Economy
Abstract
The paper is a simplified version of an economy considered by W. P. Drews, in which the sizes of the institutionalized consumer groups and the prices charged by other institutions controlling resources are manipulated by these institutions in an effort for each to achieve its share of the total money flows as agreed upon by the political process (for example by traditions and negotiations). This institutionalized view of the economy injects into the usual framework of technological relations an additional mechanism (which Drews calls the invisible band), the political process, which can arbitrarily set the proportions of total money flows to different institutions. The purpose is to show that once these are agreed upon, all other quantities, such as the levels of industrial production, prices of consumer goods and resources, and the sizes of consumer groups can be determined. Brouwer's Fixed-Point theorem is applied to prove the last statement.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1973
- Accession Number
- AD0775247
Entities
People
- George Bernard Dantzig
Organizations
- Stanford University