Wealth, income, earnings and the statistical mechanics of flow systems

Willis, Geoff (2011): Wealth, income, earnings and the statistical mechanics of flow systems.

Abstract

This paper looks at empirical data from economics regarding wealth, earnings and income, alongside a flow model for an economy based on the general Lotka-Volterra models of Levy & Solomon. The data and modelling suggest that a simple economic system might provide a tractable model for giving an exact statistical mechanical solution for an 'out of equilibrium' flow model. This might also include an exact mathematical definition of a 'dissipative structure' derived from maximum entropy considerations. This paper is primarily a qualitative discussion of how such a mathematical proof might be achieved.

• Item Type: MPRA Paper
• Language: English
• Keywords: wealth; earnings; income; entropy; lotka; volterra; dissipative
• Subjects: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; D - Microeconomics > D5 - General Equilibrium and Disequilibrium

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