A Computational Approach to the Marxian Circuit of Capital Model

Research output: Contribution to conferencePaper

Abstract

The paper reconstructs the Marxian circuit of capital model to identify distinctive growth dynamics of the financial, productive, and commercial capital stock, which are primarily induced by the change in both the three capital flows and the time-lags tied to each capital flow. The simulation shows that there exist nonlinear interactions among the three capital stocks associated with the change in both three capital flows and the time lags required for the circuit of capital. The paper also attempts to account for the effect of financialization and the realization crisis on the growth dynamics of the economic system. The simulation result indicates the presence of divergent ‘growth regimes.’ in which delays in either mobilizing financial capital outlay or delays in realization of surplus value alters the composition of the total capital stock as well as the nature of growth of the domestic productive capital stock.

Conference

Conference2022 Korean Association for Public Administration (KAPA) Annual International Conference
Country/TerritoryKorea, Republic of
City Yeosu-si
Period6/22/226/24/22
Internet address

Keywords

  • Circuit of capital
  • Time-lags
  • Financialization
  • Realization crisis
  • Simulation
  • Mathematica

Disciplines

  • Economics

Cite this