Why Forrester Wished to Replace Both Differential Equations and Economics?

Abstract

While many eminent economists have expressed disdain about the abstract nature of contemporary economic theory and how it is removed from reality, few offer a cogent solution to this problem. Jay Forrester, a control engineer turned economist proposed replacing the abstract economic model with a manager-based construct. He also aspired to replace differential equations with an intuitive integration process that can be implemented on a digital computer. This paper attempts to understand how economic theory separated from reality and how modeling using Forrester’s intuitive calculus can make it verifiable and operational.