Classic example of How to simple chalk and board to communicate complex concepts!. - No fancy animation, No ppt, No VFX. David Harvey is a legendary teacher
@@divichotu6841 In principle Leontiev's equilibrium could apply to ecology: animals, birds and insects eat each other and plants; they also excrete and decay and are are consumed; fruit and seeds are either eaten or germinate: they all act as inputs and outputs for each other. It's just that we don't know the numbers for the matrix. In the ocean, we remove some fish and so some species have less food and other species are freed from predators: and everything changes. This is perhaps a generalisation of François Quesnay's Tableau Économique, which itself derives from William Harvey's 17th century discovery of the circulation of the blood.
The Economics of Wassily Leontief. This was a dude who invented what's known as input-output analysis. As well as being important for how we design economic systems even today, it is also an ingenious example of mathematics. Here David Harvey gives a simple explanation of what input -output analysis is all about
How can the use of IO models be reconciled with bottom-up approaches such as this: link.springer.com/article/10.1007/s12053-015-9392-9 ? The author specifically mentions IO analyses as being incompatible with a policy/structural change.
His father, also a professor of economics, came from a family of Old Believers in St Petersburg, but his mother came from a Jewish family in Odessa, in the Ukraine. He studied economics at Petrograd State University before getting his doctorate in Berlin.
Central planning implies no innovation, no competition, no change in modes (technologies) of production. So, this is an example of static analysis, I think. Interestingly, though Nazi Germany seemed to be very centrally planned, there was tremendous innovation from tanks to submarines to cryptography to V2 rockets throughout the course of the war - military scientists seemed to have unfettered access to r and d budgets. Leontief matrices would not have worked for them since factory and machine designs (modes of production) were constantly being changed, from new alloys to synthetic bio-fuels. Interestingly, given the rhetoric of environmentalists who argue that we are approaching limits to growth scenarios - you can only rearrange the atoms so many ways, innovate so much - this kind of economic planning may be making a big comeback, as politicians argue for the merits of steady state equilibriums with respect to economic growth, legalized stagnation.
Kelly KitKat A couple of answers to square the circle come to mind (only rely on IO analysis for things which you don't intent to change very much, for example, or IO based planning with flexible budgets so that unutilised funds or resources can be reallocated at the end of the year). I was thinking of looking into this issue a little more, since a few interesting comments and questions have come up over the past six months.
@@guskalo19811961 but the gist is correct. Issue in central planning is not innovation. It's distribution of innovation. In other words how do we endogenously alter the coefficients of IO tables (while creating new ones and deleting old ones)
