Cassandra has moved. Ugo Bardi publishes now on a new site called "The Seneca Effect."

Monday, March 12, 2018

The View from Les Houches: Thermodynamics vs. Economics



School of Physics in Les Houches, France, March 2018. Juergen Miknes shows some of the concepts that he has developed in his parallel analysis of thermodynamics and economics. It is a remarkable synthesis that you can find described in detail here. In the slide above, he suggests to replace the Cobb-Douglas function, commonly used in economics, with a function based on the concept of Shannon's entropy.

I am not sure of a number of things in Miknes' work, in particular the idea of equating (in some ways at least) the growth of entropy with the growth of production. Nevertheless, it is a fascinating work.

Something that surprised me (but probably I shouldn't have been surprised) was how strongly Miknes was challenged by an economist in the audience. Apparently, economists don't like their field invaded by those pesky physicists. So far, economists have been able to keep physics away from their secluded garden and continue keeping the field open only to people with the right credentials (according to them). For how long, it is all to be seen.




Who

Ugo Bardi is a member of the Club of Rome, faculty member of the University of Florence, and the author of "Extracted" (Chelsea Green 2014), "The Seneca Effect" (Springer 2017), and Before the Collapse (Springer 2019)