TITLE:
The Third Equilibrium: The Economic Impact of Future and the Model of Multidimensional Equilibrium
AUTHORS:
Xiaohuang Zhu, Wei Sun, Xin Cai
KEYWORDS:
Multidimensional Equilibrium, Inflection Point, Space-Time Dimension, Total Cost, Total Revenue
JOURNAL NAME:
Theoretical Economics Letters,
Vol.11 No.1,
January
8,
2021
ABSTRACT: Based on the consideration of
the impact of current and local economic activities on the future and whole
society, this paper takes factors such as time, space, opportunity and equity
into analysis framework, and establishes a new equilibrium
system-multidimensional equilibrium. Then, combining the theory of
multidimensional equilibrium and revenue-cost analysis, a multidimensional
equilibrium model is constructed. This model provides a tool for evaluating the
social and economic activities more intuitive and scientific. Finally, in order
to verify the effectiveness and universality of the multidimensional
equilibrium theory and model, this paper selects three representative examples
of economic activities from the macro level, the medium level and the micro
level respectively, and applies the multidimensional equilibrium theory to
evaluate the economic activities at different levels through the actual data.
This study shows that, considering the future total revenue and total cost of
economic activities from the dimension of time and space, with time goes on,
most of the social total revenue of economic activities and the ratio of total
cost increase after decreasing first. This tells that in the short-term future,
the total revenue of some economic activities may be greater than the total
cost, while in the long-term future, the total revenue is less than the total
cost. Therefore, from the perspective of the long-term development, the
development planning of a country should give more consideration to the
multidimensional equilibrium, especially taking account of the future risks.