The Locus Model

The Locus Activity Cycle describes the fundamental activities of all economic systems. 

The Locus Activity Cycle describes the fundamental activities of all economic systems. 

The Locus Model™ is a new theoretical framework for understanding economic activity. By organizing and ordering the components of an economy according to their functional roles, the Locus Model enables a deeper understanding of the moving parts of the global economy.

Locus defines an economic system as any system that produces a product, whether it be a job, a company, or an industry. Locus has studied the components common to all economic systems, identifying an essential set of parts that exists in all economic systems. By identifying and cataloging patterns, Locus has developed a model of the activities and resources that exist in all economic systems, as well as the relations that exist between multiple systems.

 Locus uses this model to analyze the composition of industries and companies. Like all systems models, the Locus Model enables a more unified understanding of the economy’s processes and relations. Among other initiatives, the Locus Charitable Institute, Locus’s 501(c)(3) arm, develops educational materials and administers workshops for students in New York City and entrepreneurs in developing economies to help users unlock the full utility of the Locus Model, empowering them to take ownership of their economic futures.

Why the orange?

The Locus orange represents the simultaneous diversity and uniformity of economic systems. Oranges grow on every continent, and even though any given type of orange will have unique texture, leaf color, size, etc. due to its historical environment, it’s still the same tasty orange with the identifiable orange-like parts. Similarly, economic systems will look different from each other, but they all fulfill common functions and have common parts.

In addition to providing a useful blueprint for better understanding our economy as a system, the Locus Model is used as the basis for a new coordinate-based classification system that associates economic entities with their functional locations.