Where SFEcon Model 0 intends to demolish prejudices toward the asserted categorical impossibility of artificial economic calculation, Model 1 develops this academic curiosity toward serviceability as a tool of governance. The goal here is to enlarge our general input/output structure to embody sectors that do not create products having either prices or inferable marginal costs of production, e.g.: governments, financial intermediaries, and dependent populations.
That goal has now been reached by a demonstration of general optimality in a demonstration model that extends M0.3.2.1 to include a dependent household sector, two levels of governments and two financial intermediaries.
Further development of Model 1 is now closed. Links above will remain as source materials 1) for our general discussions on why model development in these directions is essential, 2) how our notion of hyperbolic utility functions might control the behaviors of sectors whose outputs are not 'economic' in the sense of having a price, and 3) the equilibrium state of a sample problem for further development.