Table 6 Economic balance sheet.
From: Macroeconomic dynamics in a finite world based on thermodynamic potential
Households | Firms | Sum | ||
|---|---|---|---|---|
Balance sheet | ||||
Capital | \(p\,K\) | \(p\,K\) | ||
Transactions | Current | Capital | ||
Consumption | \(-p\,C\) | \(p\,C\) | 0 | |
Investment | \(p\,I\) | \(-p\,I\) | 0 | |
Memo [gdp] | \([Y=G/\rho ]\) | |||
Wages | \(w\,L\) | \(-w\,L\) | 0 | |
Depreciation | \(-\delta \,p \,K\) | \(+\delta \,p \,K\) | 0 | |
Profits | \(-\Pi\) | \(+\Pi\) | 0 | |
Sum | 0 | 0 | 0 | |
Flow of funds | ||||
Change in capital | \(+p(I-\delta \, K)\) | \(+p(I-\delta \, K)\) | ||
Change in net worth | \(\overset{\varvec{.}}{X}_h=0\) | \(\overset{\varvec{.}}{X}_f=\overset{\varvec{.}}{p}K\) | \(\overset{\varvec{.}}{X}=\overset{\varvec{.}}{p}K\) | |
