Relative Survival Wealth in Catastrophically Contracting Economies: A Conceptual Framework for Economic Resilience

Modern economic and financial theory typically assumes long-term economic growth and stable institutional environments. However, history repeatedly demonstrates episodes of catastrophic economic contraction caused by war, political instability, hyperinflation, and systemic financial crises. During such periods, conventional measures of economic performance based on absolute asset values may lose analytical relevance as currencies depreciate, financial markets become unstable, and purchasing power deteriorates. This paper proposes a conceptual framework for analyzing economic resilience during systemic contraction. It introduces the Relative Survival Wealth Index (RSWI), a metric designed to evaluate wealth in relative rather than absolute terms by incorporating three components: relative wealth share within the economic system, relative purchasing power, and exposure to systemic risk. The analysis integrates insights from economic history, portfolio theory, institutional economics, and complex systems analysis to examine how wealth dynamics evolve during periods of economic instability. JEL Classification: D31, G01, E31, H12, O43 Suggested citation:Das, P. K. (2026). Relative Survival Wealth in Catastrophically Contracting Economies: A Conceptual Framework for Economic Resilience. Zenodo Preprint.