World-System (1950-2010) How Does the Economy of France Work?

 


The dominant component of the Economy of France, FR1=Overall Growth (see the Measurement Matrix in the Notes below). The best short-term (year-to-year) model for FRL20 is the BAU model (-111.3 < AIC = -84.59 < -57.77). When FR1 is shocked (in the graphic above), it increases FR2=(CO2+EF)--an effect that becomes negative over time). A the same time, it decreases FR3=(LU-L-N), the employment controller that never recovers completely.




A shock to the Environmental Controller, FR2=(CO2+EF), reduces growth and increases Unemployment. Finally, a shock to the employment controller, FR3=(LU-L-N), decreases growth and decreases environmental damage.


Over time (in the graphic above), FR1=(Growth) is reaching a steady state, FR2=(Environmental Damage) reached a peak in the mid-1970s and FR3=(Unemployment) reached a long plateau from the mid-1980s to almost 2000.

NOTE: Although a lot of civic conflict regarding the French Economy has to do with Austerity and Neoliberalism, the main historical feedback controllers involve the Environment and Unemployment.


Notes


FR1=(Growth), FR2=(CO2+EF), FR3=(LU-L-N) where EF=Ecological Footprint and LU=Unemployment. The data are taken from the World Development Indicators (WDI)--see the Boiler Plate for more information abut how the models were constructed and estimated.







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