Selection of variables in the wellbeing function with monetary and fiscal effects of moral inclusiveness

The wellbeing objective criterion, W(Z(0)), endogenizes interaction, integration, and evolutionary (HE) learning in continuum of inter-variable relationship,¹² epistemically premised in unity of knowledge. The endogenous interrelations between the variables in the form of multidimensional elements of the pandemic world-system across the diversity of effects in knowledge, space, and time are explained by the circular causation equations of evaluating the wellbeing objective criterion. The formal expression of the wellbeing function along with its circular causation endogenous interrelations between the variables is given as follows:

subject to the endogenous inter-variable circular causation (C.C.) relations of Z(0)-vector,

The last additional equation that quantitatively evaluates the wellbeing function in terms of the variables of Z(0) is,

We now explain the specific circular causation relations in terms of M and F and all the other variables:

By taking all the previous equations in the log-linear form we can derive partial elasticity of F to M as e_FM. Likewise, the individual x,(0)-partial elasticity of M is denoted by e _{xl M}; partial elasticity coefficients of F to x, are denoted by e _Fxi; partial elasticity coefficient of M to F is e _{M F} (#g_f,m); individual x₁(0)-partial elasticity to F is denoted by e_xiF; individual inter-x₁(0)-partial elasticity coefficient is e _X1XJ, (#e _{XJ X1}) (i, j) = 1, 2,. . .,8. These partial elasticity coefficients are quantified by the respective estimated and simulated (evaluated) partial coefficients of the logarithmic forms of the equations (4.2)-(4.6).¹³ The partial elasticity coefficients are functions of ‘0.’ They are therefore estimable followed by simulation - evaluative.

To find the monetary and fiscal impacts on the other variables and vice versa we proceed as follows: from equation (4.4) we derive first the percentage monetary policy impact,

The positive signs of (clnf/clnF) and each of (clnfj/clnx,) in the light of the focus of monetary and fiscal expansion on socio-economic development, the complementarity property of the variables of the wellbeing function of expression (4.1) with its circular causation equations yields dlnM/dln0 > 0. This is a sustained result as long as the evolutionary learning proceeds on along the path of the corresponding complementarities. Thereby, the multidimensional treatments and curative attention must be sustained in respect of scientific, economic, societal moral inclusiveness.

By a similar implication of income multiplier effect and credit creation effect of monetary theory (Mankiw, 2016),¹⁴

This result theoretically implies (clnf₁/clnF)*(dhiF dlnY) > 0 by the complementary relationship between monetary, fiscal, and output. Likewise, each of clnfj/clnx, > 0 under the income multiplier effect on every complementary inputs of scientific, economic, and societal moral inclusiveness in socio-economic development.

A similar deductive result can be derived in respect of fiscal effects of the type given by monetary policy impact of complementary monetary policy and evolutionary learning and income effects on the various inputs of scientific, economic, and societal moral inclusiveness of socio-economic development.

Expression (4.7) implies that, in as far as M and F complement in the advancement and sustainability by knowledge induction of the life-fulfillment regime of socio-economic development, so also the underlying scientific, economic, and societal moral inclusiveness sustain themselves (Stanford Encyclopedia of Philosophy, 2016).¹⁵ Indeed, evaluation of the wellbeing objective criterion is constructed and sustained by interaction, integration, and evolutionary learning experience (HE) by the property of pervasive inter-variable complementarities. By the evaluation of the wellbeing function the scientific, economic, and societal moral inclusiveness represented by the holism of treatment and cure of the pandemic is based ou complementarities between the good things of life while avoiding the forbidden other. In the present specific case of selection of the relevant variables of life-fulfilling socio-economic development we have selected those specific variables that complement between them in support of sustainability of the holistic life-fulfilling worldview of wellbeing criterion.

The statistical coefficients of expression (4.7) in its non-linear form, which can be logarithmic in terms of q-induction of all the variables and the coefficients, can be simplified of its extreme complexity in the large system methodical evaluations of the wellbeing function with its endogenous intervariable system of circular causation relations. Further account is taken of the quantitative form of the wellbeing criterion in terms of the knowledge- based parametric polynomial. Such a polynomial in 0-values may be simplified to its linear form.¹⁶