General Paper
Journal of the Operational Research Society (2008) 59, 1289–1298. doi:10.1057/palgrave.jors.2602456 Published online 25 July 2007
Dynastic cycle: a generic structure describing resource allocation in political economies, markets and firms
1WPI, Worcester, MA, USA
Correspondence: OV Pavlov, WPI, 100 Institute Road, Worcester, MA 01609, USA. E-mail: opavlov@wpi.edu
Received January 2006; Accepted April 2007; Published online 25 July 2007.
Abstract
A generic system embodies basic principles and insights that are common to a set of diverse cases and situations. This paper presents a new generic system that we name the dynastic cycle structure. It is based on a stylized model of events from the Chinese history. The model describes resource allocation between social, asocial and control uses in political economies, markets and firms that experience cyclical behaviour and homeostasis symbolizing low levels of performance. Numerical simulations with the model are used to understand the internal dynamics and to test several policy scenarios.
Keywords:
system dynamics, political economy, resource allocation, dynastic cycle, systems, simulation
