Attractors, Equilibrium, Profit, Loss

TL;DR

This paper analyzes various formulations of counterfactual general equilibrium in economies, highlighting the stability of evenly-rotating economies and demonstrating the necessity of disequilibrium and the impossibility of ultimate equilibrium.

Contribution

It provides a logical and mathematical analysis of equilibrium and disequilibrium, introducing the concept of evenly-rotating economies and clarifying their properties.

Findings

Evenly-rotating economies are stable, steady, and form-preserving.

Actual disequilibrium is necessarily present in economies.

Ultimate equilibrium is impossible to attain.

Abstract

Various formulations of counterfactual general equilibrium in economies -- systems of actors manipulating economic goods -- are logically and mathematically analyzed. Evenly-rotating economies are systems whose evolution is stable, steady, and form-preserving. Several of their qualities are qualities of homeorhesis but they are not in homeostasis: because their instantaneous state is not steady, or in other words, they are not stationary. What is possibly stationary in whole economies is change over time of behavior of their parts in a way that causes that net of relations of these parts which results to be preserved over time. Necessary existence of actual disequilibrium and impossibility of actual or ultimate equilibrium is demonstrated and different types of equilibrium and disequilibrium are discussed.