26 April 2007

Featured article: A thermodynamic theory of economics

A thermodynamic theory of economics
John Bryant, VOCAT International Ltd, Harpenden, UK
International Journal of Exergy 4(3) 2007, 302 - 337

An analogy between thermodynamic and economic theories is developed further, following a previous paper published by the author in 1982. Economic equivalents are set out concerning the ideal gas equation, pressure, temperature, entropy, 1st and 2nd Laws of Thermodynamics and the Le Chatelier Principle. Links to utility, the Law of Diminishing Marginal Utility and the Cobb Douglas function are developed. A trade cycle is constructed, based on the Joule Cycle, with equations for cycle efficiency, growth and entropy gain. A thermodynamic model of a money system is developed. Aspects concerning the measurement of economic value in thermodynamic terms are discussed.

1 comment:

Unknown said...

For those interested researchers, the author of this paper has posted some additional notes on his website.
www.vocat.co.uk/TEN12007.pdf and
www.vocat.co.uk/TEN22007.pdf
While these notes have not been peer reviewed, they do serve to clarify and enforce some points in the original paper.

John Bryant
VOCAT International Ltd