Otto J.M. Smith, H.F. Erdley. “An Electronic Analogue for an Economic System.” 11x8", 5pp. Stiff wrappers, with (original) cloth-adhesive spine cover. Fine copy. SOLD
- Reprint: Electrical Engineering ( Volume: 71 , Issue: 4 , April 1952 ) The cover reads: University of California, Institute of Engineering Research, Berkeley, California.
“Abstract: A macrodynamical economic system is simulated with electronic circuits to study the effects of various parameters on stability. Included in the circuit are the delay between the investment of money and the production of goods, the time constant of depreciation, the distribution of manufactured goods, increase of capital goods, and national consumption.”
“As early as 1892, Irving Fisher recommended the use of hydraulic analogies “not only to obtain a clear and analytical picture of the interdependence of the many elements in the causation of prices, but also to employ the mechanism as an instrument of investigation and by it, study some complicated variations which could scarcely be successfully followed without its aid” (1892, p. 44). It was not until 1950, however, that the first hydraulic analogues of economic systems were constructed. Phillips (1950) used machines made of transparent plastic tanks and tubes through which colored water was pumped to depict the Keynesian mechanism of income determination and to indicate how the production, consumption, stocks, and prices of a commodity interact. Electrical analogues were used to study models of inventory determination (Strotz et al. 1957) and to study the business cycle models of Kalecki (Smith & Erdley 1952), Goodwin (Strotz et al. 1953), and others.”--Encyclopedia dot com
“Otto J.M. Smith A [long-time] professor at the University of California, Berkeley, developed the Smith Predictor in about 1957. His model-based control strategy enables a controller to predict the future effect of its present efforts and react immediately to those predictions.”--“Leaders of the Pack: From the plant to academia, InTech's 50 most influential industry innovators”, by Jim Strothman, August 2003, ISA dot org See “Ways of Thinking, Ways of Seeing: Mathematical and other Modelling...” edited by Chris Bissell, Chris Dillon, chapter 7, "Visualizations for Understanding Complex Economic Systems”.
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