TITLE:
Conservation of Capital: Homeomorphic Mapping from Intangible Aggregate Macro-Economic CDR Space into Tangible Micro-Economic Production Spaces
AUTHORS:
Dennis Ridley, Pierre Ngnepieba
KEYWORDS:
CDR Index, GDP, Capitalism, Democracy, Rule of Law, Entrepreneurship
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
August
6,
2018
ABSTRACT: The parsimonious capitalism, democracy, rule of law
(CDR) growth model is the first global time invariant cross country model. It
is the first to incorporate aggregate exogenous and endogenous sources of
capital into a model for converting capital to real gross domestic product
adjusted for purchasing power parity. Aggregate capital is distributed to
micro-economic units of production. This mapping is shown to be homeomorphic
from intangible aggregate macro-economic CDR space into tangible micro-economic
production spaces, such that under certain prescribed conditions capital is
conserved.