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Economics and Ethics 1
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The book presents the basic models of the most important economic agents (households, firms, the banking system etc.). The influence of ethics on the decisions of persons is discussed within the context of mutual influences of one person on another. It is shown that this leads to a Markov chain which converges to a final situation which in many cases is independent of the initial conditions. Different types of decisions are considered: those in personal life, those on the general political and economics constitution and on the current economic policy, and those of normal economic routine (consumption, investment etc.). The reverse influence is treated as well: that of the economic influence on ethics. In the first volume, the conceptual basis of the whole system is laid. The book helps the reader to understand the interdependence of humanities and economics and how to model this interdependence in economics.
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