Summary
Based on a few simple assumptions, a derivation of the general thermodynamic behavior for an economic system is presented. The concepts of economic temperature and entropy are explained and an expression which is isomorphic with the fundamental equation of thermodynamics is obtained. As a practical application, the Pareto distribution of incomes is shown to be a consequence of assuming that a quasi-equilibrium economic system obeys a particular conservation law.
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© 2004 Springer Japan
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Rawlings, P.K., Reguera, D., Reiss, H. (2004). Entropy in the Economy. In: Takayasu, H. (eds) The Application of Econophysics. Springer, Tokyo. https://doi.org/10.1007/978-4-431-53947-6_35
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DOI: https://doi.org/10.1007/978-4-431-53947-6_35
Publisher Name: Springer, Tokyo
Print ISBN: 978-4-431-67961-5
Online ISBN: 978-4-431-53947-6
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