Economic cycles, wealth accumulation and energy use by Prof. Robert U. Ayres
Professor Ayres will talk about an application of the theory of wealth discussed previously by Ayres and Martinas (see e.g. Ayres & Martinas 1996). His objective is to explain the “boom-bust” behavior of the economic system in a way that might be useful in the future for forecasting and policy purposes. He demonstrate a growth theory for wealth analogous to the Solow model, for a group of countries, normalized to the work of Piketty in monetary terms (Piketty et al. 2014). They also utilize and expand on the work of Dincer and others (Dincer 2002), expressing aggregate wealth in physical (energy) terms, consistent with the ideas expressed nearly three centuries ago by the French physiocrats, later by Frederick Soddy (Soddy 1933) and more recently by a number of people with science backgrounds, including one of the authors.