Your path in the tree: Start > Schools of Economic Thought, Epistemology of Economics > Heterodox Approaches > Thermoeconomics > The economy system and entropy minimization
This entry is not rated
Log in to rate or make a suggestion

The economy system and entropy minimization

Narrower topics in the RePEc Biblio tree

This RePEc Biblio topic is edited by Yuri Fyodar Maksimenko Sr.. It was first published on 2013-04-12 00:37:02 and last updated on 2017-04-30 13:56:53.

Introduction by the editor

It's a well known idea that while any closed physical system inevitably moves towards the state of maximum entropy some rare subsystems inside it are developing in the opposite direction - towards the state of minimum entropy. It pertains to living organisms and economy in particular. We often see that the distribution of wealth in societies gets very uneven despite the moral imperative but we do not feel it as the minimization of entropy. Nevertheless it is so because the distribution of wealth becomes more certain. True, the subsequent social discord will bring about new uncertainty but this rise of entropy will be later. Minimization of entropy is the governing law of economy and the rise of entropy is its side effect. Permanent wars (which inherently are forceful distribution of resources) also happen to minimize the entropy. And various kinds of revolution are nothing else than the ways of entropy minimization. Ultimately any economy produces knowledge, i.e. some certainty which diminishes the entropy. Due to this nature of the entropy law the relevant literature is very difficult to be discerned because the words of the literature may not evoke the proper associations. But the perspicuous reader shall see. The main difficulty consists in understanding the models of entropy derived from analogies suggested by different authors. Though the analogies are true their matching the natural object is not full and the opinions of different authors may seem contradictory but it is not so. It is just different views.

Most relevant JEL codes

Most relevant NEP reports

NEP reports are email or RSS notifications about new research in selected fields. Subscriptions are free.

Most relevant research

  1. Ahmed, Syud Amer & Preckel, Paul V., 2007. "A Comparison of RAS and Entropy Methods in Updating IO Tables," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 9847, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  2. J. R. Iglesias & R. M. C. de Almeida, 2011. "Entropy and equilibrium state of free market models," Papers 1108.5725, arXiv.org.
  3. Dr. Godwin Chukwudum Nwaobi, 2004. "The World Economies And Development Goals:An Architectural Policy Framework," Development and Comp Systems 0409017, EconWPA.
  4. Mishael Milakovic', 2003. "Maximum Entropy Power Laws: An Application to the Tail of Wealth Distributions," LEM Papers Series 2003/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
  5. Davide Fiaschi & Marzia Romanelli, 2009. "Nonlinear dynamics in welfare and the evolution of world inequality," Temi di discussione (Economic working papers) 724, Bank of Italy, Economic Research and International Relations Area.
  6. Yemtsov, Ruslan, 2001. "Inequality and Income Distribution in Georgia," IZA Discussion Papers 252, Institute for the Study of Labor (IZA).
  7. Ezequiel Uriel Jiménez & Javier Ferri & María Luisa Moltó Carbonell, 2005. "Matriz De Contabilidad Social De 1995 Para España (Mcs-95)," Working Papers. Serie EC 2005-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  8. Paul Hallwood & Ambyre Ponivas, 2009. "A New Economic Analysis of the American Revolution," Working papers 2009-08, University of Connecticut, Department of Economics.
  9. Estrada, Fernando, 2010. "Brains that make revolutions: the neural theory in the French Revolutions (1789-99, 1848-51, 1870-71), Iran (1977-81) and Bolshevik (1917-1924)," MPRA Paper 25903, University Library of Munich, Germany.
  10. Herrmann-Pillath, Carsten, 2010. "Rethinking evolution, entropy and economics: A triadic conceptual framework for the maximum entropy principle as applied to the growth of knowledge," Frankfurt School - Working Paper Series 146, Frankfurt School of Finance and Management.
  11. Chichilnisky, Graciela, 1998. "The knowledge revolution," MPRA Paper 8891, University Library of Munich, Germany.
  12. Popa, Catalin C., 2008. "The tendencies in defining an optimum globalization model," MPRA Paper 13367, University Library of Munich, Germany.
  13. Dr. Godwin Chukwudum Nwaobi, 2004. "The World Economies And Development Goals:An Architectural Policy Framework," Development and Comp Systems 0409017, EconWPA.