Thursday, May 28, 2009

MV=PQ, modified to fit Quantum Economics

The orrect would be:
For some finite N, which seems to be in the range of 5-7, tyhe the equation becomes.

Vi becomes Transaction rate for equilibrium point i
Qi becomes average lot size for for equilibrium point i
Pis the ratio between Qi for this equilibrium point to the average Q overall.

Then for each i, Vi = PQi

Vi (or Qi)?? would follow the Hamiltonian and be normal, independent; thus the 1/Vi (or Q1??)trace the yield curve of the economy, long term purchases occur less frequently. This part needs some thught, maybe later.

The sum of Vi over all i is the minimum transaction rate required to meet the Hamitonian, and should minimize total measurement error. The end result is a Krugman agglomeration.

But we still can break Qi down to its subcomponents within an equilibrium point and talk about price just for that equilibrium point.

No comments: