State Space Models

All state space models are written and estimated in the R programming language. The models are available here with instructions and R procedures for manipulating the models here here.

Wednesday, May 27, 2026

What is TechnoFeudalism?



TechnoFeudalism is a term that seems to have been coined by Yanis Varoufakis (see the AI Overview below) to describe the next Stage of Capitalism dominated by Big Tech Platforms. Since we currently do not have a very clear vision of the future (or even how our current societies are being run), it seems worthwhile to flesh out this vision without dwelling on the obvious criticisms (but see below).**


  • Natural Resources from Space Exploration
  • Robotics
  • Government on a Cellphone
  • Biotechnology and Tech medicine
  • AI Automation




Notes


** An alternative vision for the Future is the Steady-State Economy, "...an economy made up of a constant stock of physical wealth (capital) and a constant population size. In effect, such an economy does not grow in the course of time..." If the TechnoFeudal economy fails (for a long list of practical constraints), some version of the Steady-State Economy might be the default (with some good ideas from the Feudal Lords).






 

How Do We Measure the State of a Social System?

 


In A New York Times article (May 26, 2026) titled G.D.P. Is a Flawed Measure of Prosperity. Alternatives Are on the Way, Lydia DePillis documents our continuing fixation with GDP (Gross Domestic Product) as a measure of societal performance. The AI Overview (above) defines System State based on the Purpose of the System. For the purpose of a Capitalist System, GDP is great. But, not everyone lives in a Capitalist System and, for those that do, not everyone benefits from GDP and the profits and wages it creates. In this post, I will look at at GDP as a measure of Societal Performance from the standpoint of the World System and the WL20 model (a State Variable model).

Full Disclosure: This is my chance for Defending the use of State Space Models for analyzing Societal Development.




Notes



WL20 Correlation Matrix


Presented above is the correlation matrix for the fourteen indicators I have used in the WL203 Model. From one perspective, it is ridiculous to think that fourteen indicators can define the state of a system with (currently) 8.3 Billion people and 195 countries. On the other hand, GDP is one of the indicators and we routinely summarize the state of the World Economy using GDP alone!

Things to notice:
  • All the indicators are highly correlated. The only indicator that has some low correlations is the Living Planet Index.
  • GWP (Gross World Product) is highly correlated with all the other indicators!
  • There are lots of interesting correlations in the matrix but is there some way to reduce the complexity of the information to hep define the state of the World System? 

WL20 Data Definitions




WL20 Measurement Model



WL20 Time Plot and Predictions




WL20 Forecast






WL20 System Matrix



WL20 Attractor Path





Thursday, April 16, 2026

Tuesday, March 24, 2026

What If Israel was the Hegemonic Leader of the Middle East?



In the video above from CNBC, Dan Senor claims Israel is now the most important geopolitical power in the Middle East. The question in my mind is whether Israel as Regional Hegemon would be best for the people of the Middle East. In this post, I use the MEA_L20 and the IL_L20 models to test the conjecture.

Google AI reports the following:


Google AI goes on to give arguments for and against Israel as a Middle East Hegemon (see the Notes below). What do the state space models predict?




Using variants of the IL_L20 Model with different inputs, the best model for the Middle East (MEA) was Business-as-Usual (BAU) Input from Israel.

COMMENT: Here is a case (and there are certainly many others) where the best outcome for a given population (the People of the Middle East and North Africa) is not going to happen, at least in the short-term.

And, the available steady-options seem equally out of reach. The absence of realistic Geopolitical Options leaves the Middle-East in turmoil for the foreseeable future.


Notes

State Space models of the Middle East in the R-programming language can be found here. Instructions for stabilizing each system are in the code. 


Law and Liberty (2025) The Era of Israeli Hegemony?



Arguments Against Israeli Hegemony

  • Lack of Legitimacy Israel is not accepted as a regional leader.
  • Scale Limitations As a country, Israel is too small to dominate the Middle East.
  • Dependency on the US Israel is seen as a US Proxy.
  • Resistance and Counterbalancing Neighboring states would form aliances against Israeli dominance.

Arguments For Israeli Hegemony

  • Military Superiority It would be a fragile, military balance of power.
  • Alignment of Interests A safeguard against Radical Islam.
  • The Abraham Accords established Diplomatic relations between Israel and other Middle-Eastern Countries.

Hegemonic Dominance AIC Statistics



Tuesday, February 17, 2026

Has the Rule-Based World Order, started after World War II, collapsed?


The Rule-based Order (RBO or the Liberal International Order, LIO) seems to be ending, the proximate cause being the Make America Great Again (MAGA) policies of the Trump II Administration. However, there are long-term structural changes in World System Geopolitics that are the underlying cause.




The RBO was embedded in a hierarchy of institutions (graphic above) that were imposed by the Allies after the Great Depression and  World War II (see the video at the beginning of this post). Needless to say, the Axis Powers were forced to agree to the imposed structure and were not happy about it. Also, because this was a International Liberal Order (ILO), illiberal, right-wing movements in all countries were also not happy and have been working since World War II to modify and even destroy the system. Commentators (see the video above) have been arguing that they are about to succeed. 

A more positive interpretation is that RBO Institutions were are product of the 20th Century and had a number of problems given 20th Century technologies. The primary problem is that the institutions are not democratic; citizens in member countries have not direct input on how the rules are written, enforced and evaluated. The democracy problem does not bother authoritarian regimes, but it encourage autocratic countries to undermine and attempt to destroy the system. Since the Trump II Administration is autocratic, it has attacked everyone of the RBO institutions (see the policy actions listed below).

My proposal for modernizing Federal Agencies in the US (here) could also be applied to the RBO institutions. It involves bringing government agencies into the 21st Century. The basic proposal is (1) Restate agency missions and make goals measurable, (2) Allow citizens to analyze in real time (on a cell phone app) how agency performance is meeting goals, (3) Require agencies to justify policy actions and link them to measurable goals and (4) allow citizens to vote (on the app, whenever they want) on agency performance.

DISCLAIMER: my proposal will not solve everything (or maybe anything) but it will allow me to construct models for evaluating the RBO. In future posts, I will construct measurement models for each institution based on how I understand their goals. Without data and results to support themselves, RBO institutions are quire defenseless against illiberal attacks. 

For the World Bank, the IMF an the Intergovernmental Panel on Climate Change (IPCC) the data is there and ready to be used to evaluate RBO institutions and member countries. 

For an example of my approach to evaluating institutions, see the Blog Roll on the US Federal Reserve.


Notes

How has the Trump II Administration tried to undermine and destroy the RBO Institutions:
  • Tariffs and attacks on the WTO
  • Withdrawal from treaties: the Nuclear Arms Treat (attack on NATO), the Paris Environmental Accords (attack on the IPCC)
  • Invasion of Venezuela (attack on World Security)
  • Threatening to invade Greenland )threats to World Security and European integrity)
  • Withdrawal from the World Health Organization (WHO)--later reversed.
  • Criticism of European Allies and NATO
  • Praise of authoritarian Leaders (Vladimir Putin, Victor Orban, etc.)
ChatGPT Summary:






 

Wednesday, November 26, 2025

Technological Long Waves

  


The Kondratiev Wave is an important element of World-Systems Theory. The graphic above is taken from Andreas Goldschmidt and gives historical specifics for technological cycles. Goldschmidt's formulation allows for the idea to be tested (one of the models I always test), is partially consistent with economic Growth theory (particularly if we do not assume a functional form for exogenous disembodied technological change in the Solow-Swan Model) and I can present some examples.

Monday, November 24, 2025

Liberalsim vs. Neoliberalism

 


I have been trying to reconcile Liberalism with Neoliberalism and put the two within David Easton's Political System. My reconciliation is:

Neoliberalism was very specific about specifying required values for Political Outputs, Liberalism less so. However, the Liberalism positions an be "filled in" by contrast to available Neoliberal positions.

First,  I'll summarize Easton's model and then go on to expand on his Political Outputs. Finally, I'll ask what Political Inuts and Feedback have to do with Liberal and Neoliberal models.

 












Notes

ChatGPT

Feature

Liberalism

Neoliberalism

Time period

18th-19th century origins

Late 20th century

Primary goal

Broad individual freedom

Market efficiency & competition

View of the state

Limited but essential for rights

Minimal, facilitator of markets

Markets

Useful but not absolute

Central organizing principle

Social policy

Some support for welfare

Shrink welfare; use market mechanisms

Freedom

Civil and political freedom

Freedom as market choice

Attitude toward inequality

Liberties more important, but some thinkers favor moderation

Often accepts inequality as necessary