There is a new type of economic model called a capital exchange model, in which the biophysical economy is abstracted away, and the interaction of units of money is studied. Benatti, Drăgulescu and Yakovenko described at least six capital exchange models – now referred to as the BDY models – which are replicated as models A through H in EiLab. In recent writings, Yakovenko goes on to show that the entropy of these monetarily isolated systems rises to a maximal possible value as the model approaches steady state, and remains there, in analogy of the 2nd law of thermodynamics. EiLab demonstrates this behaviour. However, it must be noted that we are NOT talking about thermodynamic entropy. Heat is not being modeled – only simple exchanges of cash. But the same statistical formulae apply.
In three unpublished papers available with this model, the concept of “entropic index” is defined for use in agent-based models (ABMs), with a particular interest in sustainable economics. Models I and J of EiLab are variations of the BDY model especially designed to study the Maximum Entropy Principle (MEP – model I) and the Maximum Entropy Production Principle (MEPP – model J) in ABMs. Both the MEPP and H.T. Odum’s Maximum Power Principle (MPP) have been proposed as organizing principles for complex adaptive systems. The MEPP and the MPP are two sides of the same coin, and understanding of their implications is key, I believe, to understanding economic sustainability. Both of these proposed (and not widely accepted) principles describe the role of entropy in non-isolated systems in which complexity is generated and flourishes, such as ecosystems, and economies.
EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.
This is build 33 of an application that has changed name a couple of times as the study has progressed. Originally called CapEx (for capital exchange), it was renamed to EmLab (for entropic measure laboratory) and then to EiLab (for entropic index laboratory). It remains a work in progress. Models A through H are replications of the models described by Drăgulescu and Yakovenko (2000). Model I is used in a study of entropic indices in closed bounded capital exchange models. Model J is to be used in an as yet unpublished study of open bounded capital exchange models.
|Version||Submitter||First published||Last modified||Status|
|1.3.0||Garvin Boyle||Fri Apr 14 21:29:47 2017||Fri Apr 14 21:29:47 2017||Published|
|1.2.0||Garvin Boyle||Wed May 27 14:11:18 2015||Wed May 27 14:11:18 2015||Published|
|1.1.0||Garvin Boyle||Thu May 7 16:54:53 2015||Thu May 7 16:54:53 2015||Published|
|1.0.0||Garvin Boyle||Sat Jan 31 15:44:18 2015||Sat Jan 31 15:44:18 2015||Published|