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The economy system and entropy minimization

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This RePEc Biblio topic is edited by Юрий Фёдорович Максименко (Yuri Fyodar Maksimento) (pma98). It was first published on 2013-04-12 00:37:02 and last updated on 2017-04-30 18:56:53.

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.

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  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, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association), number 9847, DOI: 10.22004/ag.econ.9847.
  2. J. R. Iglesias & R. M. C. de Almeida, 2011, "Entropy and equilibrium state of free market models," Papers, arXiv.org, number 1108.5725, Aug.
  3. Dr. Godwin Chukwudum Nwaobi, 2004, "The World Economies And Development Goals:An Architectural Policy Framework," Development and Comp Systems, University Library of Munich, Germany, number 0409017, Sep.
  4. Mishael Milakovic', 2003, "Maximum Entropy Power Laws: An Application to the Tail of Wealth Distributions," LEM Papers Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number 2003/01, Dec.
  5. Davide Fiaschi & Marzia Romanelli, 2009, "Nonlinear dynamics in welfare and the evolution of world inequality," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area, number 724, Oct.
  6. Yemtsov, Ruslan, 2001, "Inequality and Income Distribution in Georgia," IZA Discussion Papers, IZA Network @ LISER, number 252, Jan.
  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, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie), number 2005-03, Jan.
  8. Paul Hallwood & Ambyre Ponivas, 2009, "A New Economic Analysis of the American Revolution," Working papers, University of Connecticut, Department of Economics, number 2009-08, Feb.
  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, University Library of Munich, Germany, number 25903, Oct.
  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, Frankfurt School of Finance and Management, number 146.
  11. Chichilnisky, Graciela, 1998, "The knowledge revolution," MPRA Paper, University Library of Munich, Germany, number 8891.
  12. Popa, Catalin C., 2008, "The tendencies in defining an optimum globalization model," MPRA Paper, University Library of Munich, Germany, number 13367, Nov.
  13. Dr. Godwin Chukwudum Nwaobi, 2004, "The World Economies And Development Goals:An Architectural Policy Framework," Development and Comp Systems, University Library of Munich, Germany, number 0409017, Sep.