Flow-Based Modeling of Economic Process

circular flow model and its extensions are widely used tools to analyze economic process. Several features of the circular flow model have motivated developing more refined tools at the conceptual level. Especially, in ecological economics there has been a need for a better model to incorporate environmental considerations. This paper proposes a new approach to modeling the flow of economic process. The main concept in this proposal is a flow model (FM) that has been developed in the computer science area and applied in modeling several phenomena. FM-based conceptualization of economic process improves several aspects of the circular flow model and provides a descriptive mechanism to incorporate environmental factors.