TITLE:
Multidimensional Trade and Golden Rule in Africa West: Analogical Econometrics versus Numerical Econometrics
AUTHORS:
Kcodgoh L. Edgeweblime
KEYWORDS:
International Trade (Exchange of Neurotransmitters between Secretion Centers), Intergenerational Trade (Exchange between Generations of Secretion Centers), Steady State (Optimal Life Expectancy), Numerical Econometrics, Analogical Econometrics, Growth Volatility, Exchange of Externalities
JOURNAL NAME:
Theoretical Economics Letters,
Vol.15 No.1,
December
30,
2024
ABSTRACT: Objectives: Our aim is to assess whether analogical econometrics or numerical econometrics yield the best results. Methods: Through analogical econometrics, we show that, at the equilibrium level, each productive factor and each good or service is far from having the same price in each generation and country. This cannot realize an efficient trade of externalities that decouples growth and volatility. Second, we use numerical econometrics tests. Stressing the theory of multidimensional trade is sufficiently similar to a biological mechanism, we could say of one or more things that also apply to the other. We would then have more powerful analytical tools than the very approximate analogical econometric methods, and economic policy would become normative. Results: Using numerical tests, through laboratory experiments, we find that the human organism’s multidimensional exchange mechanism, consisting of more or less integral compensation processes for negative and positive externalities, leads to volatility of human growth(ecosystems), the main determinant of life expectancy, analogous to the relationship between the processes of economic growth volatility and sustainable growth. Because the analogy is clearly established, the frontier of production possibilities of neurotransmitter secretion centers appears to be the sole determinant of life expectancy, as is the global technology frontier for sustainable growth. Finally, the assumption of multidimensional exchange becomes the optimal policy for managing ecosystems and biodiversity and is the only one to guarantee general equilibrium in all markets. Any imbalance in social ecosystems is transmitted to natural ecosystems, affecting any efficient exchange system at all levels due to functional or conflicting interdependencies.