Journal Article
In this paper, the authors argue that an evolutionary dynamic economic theory must take into account stocks of goods, not just flows of services. They also argue that in such a theory the accumulation of durable goods (i.e. wealth) is actually a key feature. Moreover under straightforward assumptions, notably the no-loss rule for transactions wealth is a non-decreasing function of goods and money. Explicit formulae for wealth and several derived variables (marginal values) are derived. They also show how conventional utility functions are related to the wealth function.
