Vol 9, No 3 (2021)
Dynamic Economic Process, Animal Spirits, and Chinese Qi
Len-Kuo Hu, Daniel C. Lee
Abstract
This study builds up a theoretical model to quantify the formation of Keynes' animal spirits. It derives the equations demonstrating why and how the herding behavior or the business cycle would conduct. We integrate the Western concept of spirits and the Chinese qi in our model to show that the internal force drives a human's motive to behave and bridges man's brain and action like hidden consciousness. After deriving the dynamic behavior of the qi movement, this study illustrates how one's marginal utility function evolves across time. This non-stationary marginal utility concept is closer to modern behavioral economics and would revolutionize the conventional utilitarianism-related economic models. Our model is applicable in the micro-context to a human being and is expandable in the macro-context to any artificial entity. We hope that the methodology underpinned in this study could open a new window for future research to better cope with the current intractable and turbulent economic environment.
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Keywords
Animal spirits; Changing marginal utility; Human decision; Qi dynamics; Quantum mind.
Publication information
Volume 9, Issue 3
Year of Publication: 2021
ISSN: 1857 - 8721
Publisher: EDNOTERA
How to cite
Hu L.K., Lee C. D.: Dynamic Economic Process, Animal Spirits, and Chinese Qi. Journal of Applied Economics and Business, Vol 9, No. 3, 54-69. (2021)