Time Reversibility

Closely related to path dependence. (Fundamental theorem?) Most economic models are time reversible. Reality obviously not.

Marx describes (tendentially) irreversible trends eg:

  1. Rate of profit
  2. Organic composition
  3. Concentration of capital
  4. Centralization of capital
  5. Rate of surplus value
  6. Real wages

These also at least implicit in Maksakovsky and should be brought out in any model.

Dialectics inherently irreversible. One divides into two. Two do not coalesce into one.

“Mechanical” models inherently reversible. But non-linear dynamic systems, chaos theory etc give irreversibility. See Chaosbook.org course and book.

Chemical “equilibrium” likewise. But non-equilibrium chemistry important development. Even have systems biology “chemical” models of simple living organisms that reproduce by division with a few hundred equations. Could not run these “backwards”.

Economic models must be much more like living systems than other chemical or mechanical that are commonly used.

Hopefully rheology provides an intermediate step with hysteresis, elastic limit, cracking etc.

See entry and references in Business Cycles Encyclopedia.

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