This is super cool, but it models a non-capitalist economy, akin to the Rawlsian "property owning democracy".
There is no accounting for capital goods. Interest in terms of numeraire is modeled in an internally coherent way, but this is not reflective of how distributional struggles between owners of means of production and workers play out (or, to be precise, among agents whose property ownership levels are not unimodal, which is the inevitable result of capitalist social relations).
The distinctive characteristic of a capitalist economy is that the direct producers are separated from their means of production, such that they must sell their ability to work to those who own said means. Throughout the modern period, there has been a strong desire to have a market economy without this separation into classes.
Without capital and wage labor, the author's assumption that terms of exchange are determined by producer/consumer preferences (their "quality of life" function). But in reality world capitalist economies, the capital relation instead constrains behavior to ensure the endless expansion of capital (the so-called "valorization imperative").
It is important to note that a society with produced means of production, which are commonly referred to as "capital goods" or "producer goods", need not be a capitalist society in principle.
On a completely different note, at first glance it seems that this model could be expressed as a convex program, possibly even a linear program?
There is no accounting for capital goods. Interest in terms of numeraire is modeled in an internally coherent way, but this is not reflective of how distributional struggles between owners of means of production and workers play out (or, to be precise, among agents whose property ownership levels are not unimodal, which is the inevitable result of capitalist social relations).
The distinctive characteristic of a capitalist economy is that the direct producers are separated from their means of production, such that they must sell their ability to work to those who own said means. Throughout the modern period, there has been a strong desire to have a market economy without this separation into classes.
Without capital and wage labor, the author's assumption that terms of exchange are determined by producer/consumer preferences (their "quality of life" function). But in reality world capitalist economies, the capital relation instead constrains behavior to ensure the endless expansion of capital (the so-called "valorization imperative").
It is important to note that a society with produced means of production, which are commonly referred to as "capital goods" or "producer goods", need not be a capitalist society in principle.
On a completely different note, at first glance it seems that this model could be expressed as a convex program, possibly even a linear program?