mEC[h]ONOMICS Economics by Ivan O. Kitov
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Here I would like to present a new approach to economics which effectively makes it similar to any other natural science like physics. Principal ideas for the new concept are borrowed from the field of geomechanics. So, it is absolutely natural to call this new economic theory MEC[H]ONOMICS.
This term refers to both geomechanics and economics. As in mechanics, relationships describing the new concept are strict and predetermined. Most of them are obtained by a routine procedure of mathematical description of empirical data.
Mec[h]onomics as a concept is described in several papers. As in any strict sciences, the papers contain numerous illustrations necessary for understanding the approach and comparison of the predicted and observed values.
I intentionally introduced several new terms in order to separate from conventional economics. The latter uses many terms which are not measurable. The newly introduced parameters can be easily measured following a simple and clear procedure. One can even measure these parameters for herself/himself and estimate own position in the Personal Income Distribution. The position defines the probability for a person to get rich in future.
There are three main fields considered in the papers:
Microeconomic model for personal income distribution.
This model is based on Уfirst principlesФ and describes the PID and its evolution by a system of first order ordinary differential equations.
Macroeconomic model for GDP evolution. This model is mostly empirical, but is based on the microeconomic model. One can easily obtain future GDP values.
Transition from socialist economic system to capitalist one.