Introduction to Econophysics: Look Back Into the Future - Tomorrow's Science by the Data of Yesterday

Introduction to Econophysics: Look Back Into the Future - Tomorrow's Science by the Data of Yesterday

Juergen Mimkes
DOI: 10.4018/IJPMAT.2019010101
OnDemand:
(Individual Articles)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

The future contains terms (V) that are valid at all times, and terms (U) that are presently unknown. In economics, (V) and (U) correspond to ex ante and ex post, in physics to conservative and not conservative, in calculus, to exact and not exact differential forms or to Riemann and Stokes integrals, and to linear or non-linear equations, in statistics to real and probable terms. Apparently, the authors may represent the (V) and (U) structure in economics and physics by calculus, probability theory, by non-linearity, and chaos theory. The present paper applies Stokes integrals to double entry accounting. The resulting laws replace neoclassical theory and correspond to the first and second laws of thermodynamics. Economics and physics have the same structure, leading to the name econophysics. Production is a two level cycle with cheap production, expensive sales, corresponding to the Carnot cycle of a motor with cold air and hot exhaust. In a running motor, efficiency, the difference between hot and cold, becomes always higher. In an economy the gap between rich and poor always rises.
Article Preview
Top

2. The U – V Future Model

Why do we send our children to school and teach them the knowledge of yesterday, of our past. Will they be able to make any use of their learning in the future? Well, in learning the past, we hope that some of our knowledge today will still be valid in the near future. Of course, children will encounter many new and unknown things in their future lives. How will these unknown facts interact with the experience of yesterday? This is the starting point of the present U – V future model.

Figure 1.

Researchers cannot look into the future. Scientists use the past like a mirror.

IJPMAT.2019010101.f01

Future contains elements that are always valid (V) and elements (U) that are unknown. These elements interact in the near future by an unknown relationship W (U, V). However, is it possible to find out this relationship today? The answer is “yes”, all we have to do is to wait. After due time the near future will flow into the past. The elements (V) remain the same. The elements (U) become measurable in the past and we may now call them (u). If the future is not too far away, the relationship will still be the same and is now W (u, V), Figure 1. Researchers have to distinguish between the measurable elements (u) that will be unknown in the future, and the elements (V) that are always valid, and then they have to determine their relationship, W (u, V). The scientists have to present the relationship W (u, V) in a proper mathematical apparatus that will preserves and transfers the (U, V) structure into the future. This will be the most difficult part, but we will see that many sciences including mathematics already have a U – V structure.

Complete Article List

Search this Journal:
Reset
Open Access Articles
Volume 7: 2 Issues (2019)
Volume 6: 2 Issues (2018)
Volume 5: 2 Issues (2017)
Volume 4: 2 Issues (2016)
Volume 3: 2 Issues (2015)
Volume 2: 2 Issues (2014)
Volume 1: 4 Issues (2012)
View Complete Journal Contents Listing