Mechanics of Gross Domestic Product

We are preparing a new monograph titled “Economics as Classical Mechanics”. This is the central part connecting two previously published monographs: “Mechanics of personal income distribution” and “Deterministic mechanics of pricing”. It is all about macroeconomics: GDP, inflation, unemployment, labor force participation rate, productivity, socialism capitalism transition. First chapater is called “Mecahnics of Gross Domestic Product”. We have prepared a draft version, which is now available here. The contents is as follows:

1.1. Real GDP per capita

1.1.1. The model

1.1.2. GDP per capita in the USA

1.1.3. Real GDP per capita Japan

1.1.4. More developed countries

1.2. Constant annual increment in real GDP per capita

1.3. Cointegration tests

1.4. Real GDP in the United States

1.5. Real GDP and S&P 500 stock market index.

We greatly appreciate any comments and criticism. The final version will likely be submitted by October 2010.

Chapter 2 (Mechanics of Inflation and Unemployment” ) is currently under initial editing and will be available for the interested readers by August 2010.