Abraham Ibikunle laniyan theory of wealth macroeconomics .Extended

The theoretical premise you propose—that "market rational forces" (necessity and liability) replace traditional demand and supply to ensure universal capitalism and eradicate wealth inequality—requires a fundamental redefinition of standard economic variables. In econometrics, this new theory would be modeled by defining new relationships and estimating parameters that capture these alternative forces.

Econometric Specification of the "Abraham Ibikunle Laniyan Theory of Wealth Macroeconomics

"Qd=b0+b1P+b2y+ed

Qs=y0+y1P+y2W+es

Where U is income ,W is input cost,b&y are parameters ,e is error term.

Your theory replaces these with forces driven by necessity and liability.

1. Defining New Variables.

We would first define observable proxy variables that capture the concepts of "necessity" and "liability":

Necessity (N): The inherent human requirement for goods and services essential for a dignified standard of living (e.g., housing, basic nutrition, healthcare). This would likely be measured not by willingness to pay, but by a basic needs index or a measure of physiological/social requirements.

Liability (L): The obligation or responsibility of the system (producers, society, or the state) to meet the universal necessity for these goods/services. This could be measured by regulatory frameworks, public sector capacity, or social welfare commitments.

Universal Prosperity UP: A measure of wealth equality, perhaps a low Gini coefficient for wealth distribution.

2. The New Econometric Model.

The "Abraham Ibikunle Laniyan Theory" would postulate that price and quantity are determined not by the intersection of supply and demand curves, but by an optimal allocation derived from minimizing the gap between universal necessity and systemic liability.The econometric model would likely focus on the relationship between these forces and the ultimate goal UP, using regression analysis to test the hypothesis:

Model A:The determinants of UP

Upt= a0+ a1Nt+a2Lt+a3(N×L)t+&Xt+nt.

*Upt: Universal prosperity (e.g.gini coefficient)at time t

*Nt: aggregate measure of social necessity.

*Lt: aggregate measure of systemic liability 

*(N×L)t: interaction terms to capture how well liability meets necessity .The theory predicts interaction terms is positive driver of universal prosperity.

*Xt: vector of control variables (population growth, technology stage etc).

*Nt: stochastic error term potentially modeled using stochastic processrdd to account for unpredictable shocks to necessity (e.g.pandemics) or liability (policy failures).

Hypothesis Testing:The central hypothesis to be tested using this model is that (3)(the parameter on the interaction term) is statistically significant and positive, confirming that actively matching liability to necessity is the key mechanism for achieving universal prosperity and eradicating inequality, which standard demand/supply models fail to capture.This model could be extended using linear programming techniques to determine the optimal levels of (L) (policy interventions) required to hit a target (UP) level, given constraints on (N)and resources.We can analyze the data using this new econometric framework, but we need to first agree on the specific data points or proxy variables we should use to empirically measure 'Necessity' and 'Liability'. We shall brainstorm a list of 3-4 key data points for each.

In the "Abraham Ibikunle Laniyan Theory of Wealth Macroeconomics," the second theorem integrates market forces within a dual macroeconomic structure (formal and informal sectors), arguing that traditional market forces are essential for growth, but their structural inadequacy necessitates the parallel operation of "market rational forces" (Necessity and Liability) to ensure equitable wealth distribution and control inflation.This dual approach aims to increase the "velocity of wealth distribution" beyond just the velocity of money.

Econometric Specification of the Dual Macroeconomic Setting.

We model the economy in two main sectors that interact:

Sector 1: The Formal Market Economy (Traditional Forces)This sector operates largely on standard supply (QS)and demand (QD) dynamics, focused on generating GDP and aggregate income.

*Variables: Price (PF), Quantity (QF), Money supply (M),GDP(Y), Velocity of money (V).

*Model:The core relationship remains the equation of exchange but V is no longer assumed stable.

MtVt=PF_tYF_t.

Econometrics: We would use a Vector Autoregression (VAR) or Dynamic Stochastic General Equilibrium (DSGE) model to capture how standard monetary policies (changes in (M) or interest rates) affect formal GDP growth (Y_F) and formal inflation (P_F), recognizing that these forces alone generate inequality.

Sector 2: The Universal Prosperity Economy (Market Rational Forces)This sector (including the informal sector and debt economy) is where the "Necessity" (N) and "Liability" (L) dynamics dominate, focusing on wealth distribution and meeting basic needs.Variables: Necessity Index (N), Liability Commitment (L) Gini Coefficient of Wealth (G), Informal Sector Share (I )Velocity of Wealth Distribution V_W.Model: The new "velocity of wealth distribution" V_W can be modeled as the speed at which wealth disparities are reduced by meeting necessity commitments via liability structures (e.g., social housing programs, debt relief mechanisms, microfinance in the informal sector).

VW.t=p 0+p1(Lt/Nt)-p2Gt -1+st

Econometrics: We would estimate the parameters (p1p-2) using time-series data. The hypothesis is that a higher ratio of liability to necessity significantly increases the velocity of wealth distribution (reduces the Gini coefficient faster). Stochastic processes (t)would capture the inherent instability of the informal or debt sectors.

The Integrated Dual-Sector Model.

The key insight of the theory is the interaction. The formal sector generates aggregate wealth, while the "rational forces" sector distributes it.The overall Universal Prosperity (UP) is a 

The Integrated Dual-Sector ModelThe key insight of the theory is the interaction. The formal sector generates aggregate wealth, while the "rational forces" sector distributes it.

The overall Universal Prosperity (UP)is a function of both formal GDP growth and efficient wealth distribution:

UPt= 0o+01YF,t+02vw,t-03PF,t+Wt

This integrated model allows economists to use linear programming to find the optimal policy mix (e.g., how much formal sector tax [liability] to channel into informal sector initiatives [necessity fulfillment]) to maximize (UP) while keeping overall inflation (PF) stable.

We have a clear path to define the structure of the model. To proceed with actual analysis, we need specific proxy variables to measure the "Necessity Index" (N) and "Liability Commitment"(L)