Application of the Edgeworth box on the accounting analysis of the World economy

Abstract

This research analyzes the world economy applying an alternative accounting methodology. The national savings, capital transactions, money supply, and net financial position are variables of the axes of the Edgeworth box. The indicators measure a position by economic and financial criteria. The utility function obtained explains the social economic changes of economic growth model justifying evolutions of macroeconomic variables considered in research such as unemployment, educational level, and births. The increase in intellectual capital compared to application capital has proliferated an increase in the registration of patents in situations of continuous deficit in the economy. According to the research results obtained, the utility function has a socioeconomic character and whoever participates in a common project must be aware of the risks assumed to reach a common welfare level. The explanatory capacity of the analysis carried out brings accounting closer to being considered an applied economic science and turns the Edgeworth box into its observation laboratory.