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Economic Cycles and the Thermodynamic Uncertainty Relations
Version 1
: Received: 18 March 2024 / Approved: 21 March 2024 / Online: 22 March 2024 (07:26:56 CET)
How to cite: Parker, E. Economic Cycles and the Thermodynamic Uncertainty Relations. Preprints 2024, 2024031280. https://doi.org/10.20944/preprints202403.1280.v1 Parker, E. Economic Cycles and the Thermodynamic Uncertainty Relations. Preprints 2024, 2024031280. https://doi.org/10.20944/preprints202403.1280.v1
Abstract
In the century and a half since Maxwell first conjured his “finite being” which Lord Kelvin subsequently dubbed a “daemon”, researchers have explored the connections between non-equilibrium thermodynamics, entropy, and information theory. In recent years various Thermodynamic Uncertainty Relations (TURs) have been derived to inform upon the relationship between the entropy production and the precision possible in thermodynamic machines and processes. In this paper the recently derived TURs are applied to the hypothetical thermodynamic economy as described by Parker [1]. The TURs define the lower bound on the total entropy production of the economy. Changes in this entropy production rate has consequences on the stability of the economic system and plays a central role in the business cycle. This new perspective has important implications for policy makers, researchers, and other economic actors.
Keywords
Entropy; Landauer’s Principle; Multiscale Entropic Lifecycle; Thermodynamic Uncertainty Relations; TURs; Entropic Yield Curve; Business Cycle
Subject
Business, Economics and Management, Economics
Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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