tag:blogger.com,1999:blog-6837159629100463303.post1531548960941137446..comments2023-06-18T01:25:08.748-07:00Comments on Information Transfer Economics: The economic combinatorial problemJason Smithhttp://www.blogger.com/profile/12680061127040420047noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6837159629100463303.post-54955231887443391682014-09-30T23:05:13.742-07:002014-09-30T23:05:13.742-07:00As a fun side note: Using the best fit value of $c...As a fun side note: Using the best fit value of $c_{0}$ = 0.478 billion dollars and the most recent quarter of GDP data, we get 36192! which is approximately 10^149270 states ... roughly equivalent to a system with 496,000 (distinguishable) on/off states.<br /><br />That means the US economy is roughly as complex as an 2D Ising model with ~700 spin states on a side ...<br /><br /><a href="http://en.wikipedia.org/wiki/Ising_model" rel="nofollow">http://en.wikipedia.org/wiki/Ising_model</a><br /><br />Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-74400672316404799502014-09-29T13:23:38.430-07:002014-09-29T13:23:38.430-07:00I am aware of many attempts to recast economics as...I am aware of many attempts to recast economics as thermodynamics and in particular Paul Samuelson's acerbic quotes against it (you can search this blog for Samuelson and pull them up) ... And you are right: the IT framework could be used to build equilibrium thermodynamics (so is more fundamental, and that's why the analogies can work so well sometimes). However, the framework can also be used to build other theories that aren't thermodynamics ... so you have to be careful not to go too far.<br /><br />There might be a way to introduce the fundamental relation ... however that is equilibrium thermodynamics. Equilibrium thermodynamics would apply e.g. to the post here (where I make use of a "temperature" log M), but it wouldn't always apply in a very important sense. <br /><br />The information transfer framework is like a generalized thermodynamics where you don't really have/need a concept of temperature or equilibrium (it is basically more general than stat mech, but the trade off is you don't get as complicated dynamics). One of the interesting things that may come out of the framework is a rigorous way to <i>discover</i> those concepts -- but that is speculative.<br /><br />In a sense, the thermodynamic picture where I resort to the partition function, make note of that diagram with several countries on it and use log M as a temperature is "equilibrium" economics, but most of what I've been doing with <a href="http://informationtransfereconomics.blogspot.com/2014/06/the-information-transfer-model.html" rel="nofollow">"the"</a> information transfer model doesn't need/have a temperature or equilibrium.<br /><br />Another way to say this is that sometimes using the partition function (log M as a temperature) will get you the wrong answer -- it will give you the equilibrium answer.<br /><br />I have a little more on this in this post:<br /><br /><a href="http://informationtransfereconomics.blogspot.com/2014/07/information-transfer-is-state-of-mind.html" rel="nofollow">http://informationtransfereconomics.blogspot.com/2014/07/information-transfer-is-state-of-mind.html</a>Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-76152419646381360432014-09-29T12:59:09.175-07:002014-09-29T12:59:09.175-07:00Cheers, Tom.
And yes, there should be an "in...Cheers, Tom.<br /><br />And yes, there should be an "in" in there.Jason Smithhttps://www.blogger.com/profile/12680061127040420047noreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-1863899288159467592014-09-29T05:56:59.279-07:002014-09-29T05:56:59.279-07:00Given that you're slowly introducing S, T, W e...Given that you're slowly introducing S, T, W etc. maybe there's a way of recasting it all akin to the fundamental thermodynamics relation. I don't want this to come across as trying to shoehorn things into thermo. looking equations like every engineering economics crossover has tried to do for 50 years - but maybe the analogies are strong given the IT framework is fairly fundamental?Karthikhttp://www.google.comnoreply@blogger.comtag:blogger.com,1999:blog-6837159629100463303.post-11925578361504130692014-09-28T18:18:36.944-07:002014-09-28T18:18:36.944-07:00Jason, last paragraph:
"(approximately the s...Jason, last paragraph:<br /><br />"(approximately the same advanced economies)"<br /><br />Do you need to insert an "in" in there?:<br /><br />"(approximately the same in advanced economies)"<br /><br />I'm going to stew on this post a bit. <br /><br />I'm a very occasional skier. I think I've been about 8 times in my life, over the course of nearly 20 years. I can work up to making it down an intermediate slope w/o too much panic. Last time I recall looking at the two unaccompanied toddler aged girls in the ski-lift in front of me and thinking to myself "Someday I hope to be as good as those two."<br /><br />I feel the same way about your intuition regarding this stuff. Someday I hope to have at least a respectable percentage of what you have myself.Tom Brownhttp://www.google.comnoreply@blogger.com