arXiv Open Access 2020

Thermodynamics Formulation of Economics

Burin Gumjudpai
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Abstrak

We consider demand-side economy. Using Caratheodory's approach, we define empirical existence of equation of state (EoS) and coordinates. We found new insights of thermodynamics EoS, the {\it effect structure}. Rules are proposed as criteria in promoting and classifying an empirical law to EoS status. Four laws of thermodynamics are given for economics. We proposed a method to model the EoS with econometrics. Consumer surplus in economics can not be considered as utility. Concepts such as total wealth, generalized utility and generalized surplus are introduced. EoS provides solid foundation in statistical mechanics modelling of economics and finance.

Topik & Kata Kunci

Penulis (1)

B

Burin Gumjudpai

Format Sitasi

Gumjudpai, B. (2020). Thermodynamics Formulation of Economics. https://arxiv.org/abs/2012.01505

Akses Cepat

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Informasi Jurnal
Tahun Terbit
2020
Bahasa
en
Sumber Database
arXiv
Akses
Open Access ✓