New economic model predicts sustained growth or decline of entire systems.
The article discusses how economic systems can be compared to thermodynamic systems, but transferring concepts between the two fields is difficult. Instead, borrowing formal devices from Open Systems Theory can help analyze economic development. The researchers present a model showing how interactions between different sectors of an economy can lead to growth or decline, with spillover effects playing a key role. This model demonstrates how sustained development can occur after initial fluctuations.