Analysis On The Non-linear Industrial Or Economic System

The rapid development of economics requires scholars who study pure economic theory a high scientific attainment.As a result,those who still believe that earthquake can be accurately predicted in short time doesn't really know much about nonlinear science,thus feeling confused about "how to deal with the organic or nonlinear problems in human society."Scholars of a century ago,such as Karl Marx and Michelle,have already noticed the organic or nonlinear problems,which could not be handled with contemporary science and technology.Two important steps have been made in nonlinear science with the development of 20^th-century scientific technology and mathematics.One is the introduction of optimum programming theory into economics.The other is the rapid development of nonlinear dynamics.This paper predicates that computer technology will become the mainstream of economics with the progress of nonlinear science in the not-too-distant future.The author has a plan to compose a thesis on economics with formal logic of pure computer procedure.Below is the abstract of the paper.(Ⅰ)The main aim of the paper is to quest the future of economic theory,then the division theory and application will be researched.This paper originated from a tremendous research plan:to establish a fundamental analysis framework,which can explain all social problems in all economic fields and related problems.The birth of the plan has been affected by Yang Xiaokai.He hopes to inosculate all economic theory by his new classical economic theory.However,this paper is just an initial theoretical principal.That is to build a formal analysis framework of"personal specialization - Business organizations - the industrial structure - macro-economic";to link up" Walrasian static general equilibrium," "dynamic economy" and "Computer simulation of reality" approach through the gradual relaxation of the assumption to form a coherent system of research methods(and calculate the index of reality sample,including the degree of labor division),and to study the system constituted by economic domain and administrative domain...Areas of research in this article involves two directions:the labor division (specialization),the role of the organic nature of the economic system(or the complexity or internal,relevance of co-evolution).the Specific research core point in this article is:the system,labor division(specialized),co-evolution of industry(or market) system or organic(or non-linear chaotic system,Hypercycle). In this paper,the adoption of formal logic starts from perspective of specialized labor division into the economic system.Evolution of industry or market interacts with each other.One of the purposes of this article:to establish a theoretical analytical framework of specialized perspective of labor division(to illustrate all the problems in industrial economy);the second objective of this paper is:to study the law of the actual industrial evolution from the perspective of nonlinear and complexity which is closer to the reality.The second purpose and the first one form two faces of a coin which is in essence the same.Formal study of the theory can not only to establish a rigorous analysis of the logical framework,but also to study the true path of the changing realities in order to obtain true logic;the law study of the industry evolution is deducted through a formal framework in order to explain the inherent law covered up the appearance of spray.Research framework of this article will also show the evolution of modern scientific methodology process,in which the static part is of Newton's physics decision paradigm,the dynamic part is of the introduction of dynamic non-linear and dynamic organic nature,and the stimulation part shows the advantage of the computer technology to deal with the complexity of the world.Logic of all parts will seek to form similarity and a unified analysis framework(static formalization,dynamic formalization,computer simulation formalization and actual observation of measurement and verification).The full text of the study can be seen as evidence by two of the main structure as follows:the main frame is a formula from perspective of labor division;the second frame is the nature of the evolution of industry or the market.The main analysis process is constituted of static analysis,dynamic analysis,and measure and sample analysis and computer simulation.Static analysis is one of the most basic parts,which has a strong assumption far away from reality,establishing the basic system of formal logic for the purpose of simplifying reality.In the composition of the static analysis the new classical framework is of the dominant ratio; dynamic analysis and computer simulation is of the complex high-level part in the analysis framework,which is of the gradual relaxation of some assumptions,and gradually closer to reality.The purpose of simulation part is in line with reality based on the current formal sector,a new analysis tools.Measure and sample analysis are assistant tools in order to discover new laws and to verify the logic of theoretical results from the reality.In addition to theoretical or methodological innovation,the purpose of this paper is also to study the underlying causes of the industry evolution from the perspective of labor division.This paper,after literature review,proposed 20-related issues,including:1.Is the evolution of labor division strengthened in one-way? How to determine changes in the level of labor division?2.Will the efficiency of market transactions lead to faster development of the labor division in enterprises and reduce the average size of enterprises? Will large number of inter-firm labor division lead to the decrease of industrial concentration? 3.What is the relationship between an average size of enterprise and the total population? What the situation will be in the shortage or surplus of labor resources? How is the scale effect shown by theory of labor division?4.How different division of the structure to compete in the same industry? How the enterprises in the same or different labor division or industrial chain business?5.Will the lengthening of the chain of industrial labor division or complexity of networks of industrial labor division lead to greater economies of scale?6.How to maintain the assumption of increasing returns of scale economy which is not anti-competitive(Marshall Dilemma).This problem is also given an explanation by Stigler.Is there any other explanation?7.to test the inference of Yong-Sheng Zhang on the evolution of industries:the characteristic of developing industry is non-vertical integration,while that of declining industry is vertical integration.8.What is the means and source of industrial innovation?9.Are there any differences in the changes of the division chain or division structure in different countries(the United States and Japan)?10.To test a point of view of Jean Tirole:the impace of cost difference to industry.11.with regard to the issue of industrial integration12.Re-examine Stigler's criticism to Allyn Young13.The integration of formal theory of the labor division and practice of traditional industry analysis;14.Smith theorem test;15.What is the nature of the market?;16.What is the relationship between the system and the evolution of labor division?17.The relationship between degree of specialization and transaction costs?18.The evolution rule of the division of the administrative domain (professionalism)?19.How the enterprise came into being? are there other explanations?;20.How government came into being?The attempt to solve all the questions will be done in the study of analysis framework in the paper.(Ⅱ)This article first studies the economic research methodology before the analysis framework.The research carries out two major tasks:to collate and analyze the general context of the economic theory in more than 200 years;to review the emerging modern disciplines relating to economics.Both are for establishing research framework for the labor division behind this chapter.For economic theory,the paper stresses the functions of observation of the perspectives,coherence,measurement scales,assumptions,formalization, cross-disciplinary and tools and so on.In the study of methodology,system of labor division,which includes administrative specialization,is studied as an organic system,and guiding principles are designed to study the organic systems.Research methodology determines the method of the full text:to uphold the combination of formal mathematical and logical of text with the formal study of computer logic.Study will be started from a static to dynamic,and to the simulation computer program.This process is a process of gradual relaxation of the assumption.The biggest limitations of static analysis is time(the advantage is easy to obtain analytical solution),the biggest limitations of dynamic analysis is the difficulty to obtain nonlinear dynamic equation analytic solution(the advantage is of time relaxation),the biggest limitations of computer simulation is the difficulty to obtain detailed data to restore the reality of the actual track(the merit is that this is relatively unrestricted by time,computing power,the number of parameters,constraints limit number and other factors).(Ⅲ)Static formal study is the first component of the analysis framework.This component still uses new classical paradigm:comparative static analysis of general equilibrium.Static Formal research is the formal mathematical framework which put administrative specialization into labor division;this is point of view which has never been used.Exploring the use of passive infra-marginal analysis to find the static Walrasian general equilibrium under the optimal solution and Pareto optimality of society as a whole.after being put into the administrative specialization,the new classical theorem that to simplify the infra-marginal analysis is no longer suitable,then this article for the first time deduced the infra-marginal analysis theorem 3.1(Theorem Chen named in this article) suitable to the administrative specialization.This theorem only applies under certain conditions in a static state of the Walrasian general equilibrium.All the conclusions of static formal study can be true only in the static Walrasian general equilibrium.Here are the following conclusions:1.it proves that the size of the population restricts the general equilibrium."Then the critical point to distinguish whether it is a complete administrative specialization is in fact the conditions of the population(3.33).A sparsely populated community cannot fully be administratively specialized.One of the reasons is there is no enough output to support the complete administrative specialization."And get conjecture 3.2(scale-Ⅵ):degree and types of a country's administrative specialization relate to population size.2.with regard to the administrative issue(reasons,evolution direction? System (administration) - labor division - the market.) The situation is basically the same with that of authentication of Allyn·Young(1928).If compared with the complete self-sufficient structure,this article has already got the conclusion that system (administration) - the labor division - the markets develop in the same progress. However,there is no practical significance to this conclusion. Theorem 3.1 proves decision-making advantages in the Case of a high degree of administrative specialization.Why "two transaction efficiency parameters compared can distinguish whether the administration will appear in the structure depending entirely on of the labor division"? This is known as a mystery 3.1 of this articlel In this paper,it is also known as the conjecture 3.4.There is also another conjecture 3.5:if the exogenous transaction efficiency is too high,it will hinder the emergence of the administration.So what is the discipline of the emergence of administration? This article summary as follows:Administration's emergence is related to certain transaction efficiency, population and A parameters.(The structure of each of the three conditions,with the structure of the transaction types and the relative efficiency of the structure of the relevant type of transaction efficiency compared weighted together.)3.when there is intermediate product,in Yang's "Lemma 8.1" and Yang" business generation" mathematical formalization,this paper argues that there is a significant omission:In the final product of the production function,this article do not agree with Yang's the scope of the weighing parameters of the set of intermediate inputs(index).This article re-set contains the final products production function including intermediate goods.In considering the case of the administration,also re-studies intermediate products weighting parameter A(or contribution).this paper proves the range of different property rights of business conditions(3.38b **) and the range of different professional property with administrative specialization(3.38b *****). And forming the conjecture 3.3 of this article:that who the employer of enterprises is relates to contribution rate of the intermediate products in the final production. (Because in the optimal structure,the individual production functions of the final product,ly is always "1" so ly weight of the index will not be affected in this analysis). In this paper,we prove Conjecture 3.3 will be set up under certain conditions.4.with regard to "the emergence of Enterprise":All the business models require a prerequisite,which is at least closely related to the interval A;The establishment conditions of all types of enterprises are related to "weighted array among different types Of transaction efficiency," including at least" conversion efficiency of intermediate products x in the enterprise or the management efficiency k35of enterprise ";in response to conditions of division of the complete structure of the market,the conditions also at least include product market transaction efficiency (1 + k31)including intermediate products x;By general equilibrium analysis including enterprises,this article found intermediate goods contribution parameter A plays a vital role in distinguishing between different general equilibrium structures.The role even takes precedence over transaction efficient parameters in the most of structure.A's role has been ignored by Yang and other scholars;Comparison of property right structure of two companies(including administration)is the conditions "(3.50e) or(3.48f)":This is comparison between four types weighted array of transaction efficiency—"the final product y product market transaction efficiency(1 + k32),intermediate goods x experts and experts in the final product y trading efficiency of the labor market(1 + k33) and(1 + k34),enterprise transformation of intermediate products x efficiency or managerial efficiency(1 + k35) "—and the critical point.The critical point is constituted by the parameters "a,t,w, c".Type B winding thinks compared with self-government without any administration, the emergence of the administration is also associated with different types of transaction efficiency.Of course,we cannot absolutely rule out the role of other parameters(factors).5.One of the innovative sections of static formal research:in B-type general circuitous(m＞2),there may not have been found the structure of enterprises in the classical literature there(need to check with the latest literature) and that there is certainly not have been found model of government andenterprises in the existing literature.This paper theoretically added content to study.Moreover,there must be a business for the paradigm of industry analysis.6.With regard to the emergence of labor division.The results of this paper said:"The increase in transaction efficiency result in the structure leaping from self-sufficiency to structure of the labor division" is only a condition resulting in the labor division. Yang's model only insisted that the condition is one-sided!In this paper,the indirect model(A,B type) are found in the emergence of some labor division structure,in particular the emergence of the complex labor division structure require different types of transaction efficiency parameters.This is an aspect which Yang paid no attention in new classic study.Labor division is the norm of human society,without which there will be no chance of haman society.Therefore,it is very hard to take the completely self-supporting structure as the base of the other division structure.Different division structures need concrete analysis.This paper found:mathematically,the different structure of the labor division can be achieved just when breaking a corresponding condition of the conditions of the group a series 3.44a relating to self-sufficiency.This means breakthrough of any condition of Section 3.44a series can emerge a division of the structure! Breaking the conditions of Section 3.44a is a necessary condition for the labor division generation. However,is the "labor division created breakthrough self-sufficiency" the results of higher transaction efficiency? This article does not determine that!Class AB both find that emergence of the division is comparison between the different types of transaction efficiency.This conclusion does not conform to the study with the New Classical School(Yang,etc.)7.Re-design of the general pattern of the B category winding(m＞2).The increase in the types of new products does not necessarily positively correlated with k.(In the absence of pure market structure of enterprises,this is bound to be set up the positive correlation only in a range of 0＜a＜1 / 2.It means that the intermediate goods production in the contribution of the final product rate cannot be too high!)8.To derivate the general pattern of C-type around for the first time.Then we get conjecture 3.4:for the expression of intermediate goods prices and the general form of output.9.Rediscovery of C Class circuitous research:in the final product production function, the importance of the impact factor of the intermediate products(parameterβ).This factor is parameter a in the A category.This is a new discovery neglected by new classic scholars.10.A discipline has been confirmed of C type:"When the level of the roundabout continues to increase..,The first steam engine will be more slowly than a horse but also more expensive."11.From the formal derivation of this chapter,we will understand:the reason why all macro-phenomena more than two people involved are based on individual micro-established.12.B-type indirect studies suggest that:In this paper,based on the study of m and k, this article does not agree with the conclusions of industrialization of new products made by Yang.This article does not consider that transaction efficiency is certain s to promote the emergence of new types of products.There are some limitations of the static formal study,for example:based on the assumption,"how the optimal structure becomes something out of nothing in a sudden?" And "how the best structure get the proliferation of local structure into the overall structure? ",the evolution model of economic organization may be of different types of structure," the changing scope of variables ",the impact of" capital(or assets) of the stock "for the general equilibrium effects,time assumptions,the survival standard,non-identified and non-linear,dynamics of change and endogenous administration of trading efficiency parameters(with time) the...and so on.After ChapterⅢ,the paradigm of the theory in this article will no longer take achievement of the optimal model as study the target!(Ⅳ)Dynamic formal study is based on certain assumptions of the relaxation of static formalization.Here are two main targets:firstly,the establishment of a dynamic formal framework of labor division(including administrative specialization);second, connection of dynamic formalization and organic system analysis.In this part the main work is to establish dynamic analysis framework aiming at: administrative specialization,division of labor and organic systems,steady-state (homeostasis),certain logic static analysis,non-balance,personal decisions Corner model,the economic domain and non-economic domain(social backgrounds: administration,culture and so on...),innovation.19 proposed improvements are raised to dynamic.For Organic system there are three improvements;and so on.Taking all these improvements,this chapter also proposed methods to establish dynamic formal framework.Which put forward:fordynamic analysis framework can be divided into two parts.A framework,the emergence of innovation of evolutionary Game Analysis;B framework,Logisticanalysis of evolution equations contain the two-government structure of industry. (Ⅴ)the paper successfully deducted 5000-year Chinese history model with the research results of the dynamic formalization.The paper successfully deducted the 30-year pattern of industrial development in China since 1978 with the research results of dynamic formalization.In Deduction of 5000-year formalization in China,this article for the first time raised this division of labor in administration(two professions).(Ⅵ)In order to test empirical data,this article re-develop a set of indicators to qualify the extent of labor division system,and we claim that the indicator system is stronger than the index system proposed by Yang(his system is based on a static general equilibrium).Application of indicators,the paper made quality analysis of the actual data.This data comes from long-time direct observation to the Western restaurants in Jiangxi University of Finance and Economics.(Ⅶ)Computer simulation is the final framework for the formal study in this paper.The aim of this framework is to deduct formal model on the basis of restoring reality evolution track;the formal model is not expressed in words or mathematics,but a computer program.There are three examples in the simulation of this part:the study of market competition process;the study of business labor division and management;the study of evolution of the industry.The research process of simulation 3 is of great complexity;to restore the complex management behavior of the 100 different business enterprises in reality is a very large procedure.This article made a conjecture whether such simulations can be widely used in historical research and to develop a new discipline,"Simulation of History."(Ⅷ)research results of the full text of are:new ideas of the theory of labor division;new content of administrative specialization to methods of labor division formalization and innovations of research methods(combination of static,dynamic and computer simulation);analysis of reality with the research results of labor division formalization.A lot of new research results appear in this article appears,in which some maybe innovative as bellows:1.The study of labor division formalization of administrative specialization is innovative.After the content of the Chief of specialization,transaction efficiency parameter k can be in part related to the Government to divest from biochemical factors; 2.Theorem 3.1 is derived for inframarginal analysis of labor division formalization of the simplification of administrative specialization;3.In the dynamic context,this paper gives up the new classical ideas of balance,using non-equilibrium setting usually adopted in the evolutionary economics,and tries to make analytical framework more realistic.4.This paper made industries(industries) analysis in the use of a "realistic simulation" approach from perspective of labor division;5.A new set of indicators we designed to make sample analysis of truthful data.There are also some flaws in the paper to be solved.For instance,we don't generalize Theorem 3.1,which can be proved only under certain conditions;we cannot acquire all latest materials in every knowledge points especially English materials;this paper doesn't make general deduction to the formal analysis of administrative labor division; as a doctoral dissertation,the subject of this paper may be too large;In this paper,the process of mathematical proof is still not very tight,many places remain to be improved;the analysis of the general form of C-type around(types of intermediate goods is greater than 1) encounters a problem:it was because of the emergence of geometric series,this article cannot get the simplified geometric forms in normal condition;The emergence of the optimal planning solution makes possible angle points.However,it must be noted that:the best planning does not have the analytical solution;the best practices is most appropriate for a static general equilibrium;so far,all studies(including this article) cannot be a good solution to labor division Of incomplete specialization.There are many better tools in Modern technology to determine the chaotic(fractal,steady-state) nature;the system,because current technology in this article isn't so mature,cannot control the regression analysis.