The Relative Character of Functional Time

Abstract

Rohatinski shows that the duration of a specific economic process is determined by the sum of the consecutive functional time units that have elapsed. He reasons that this length is absolute from the aspect of the system’s time measuring convention, but relative in terms of relationships between the time measuring systems in the systems moving at a uniform speed. As a result, he concludes, in a system moving relative to a stationary system, a time dilation can be observed and this dilation can be analytically described by applying a modified form of Lorentz transformations. The distinction is important, he continues, because the relationships among functional flows of individual systems directly affect the allocation and structure of the use of capital, the equilibrium size of the certain economic categories or variables, structural and causal relations or parameters, the absolute and relative efficiency of individual systems, and the time modalities of establishing a macroeconomic balance.