Essays on Thermodynamics and Economics Report

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The paper "Thermodynamics and Economics" is a perfect example of a report on macro and microeconomics. History is an important component in many techniques, technologies, and any other factor that affects human development. For example, a long history exists between neoclassical economics and physical thermodynamics with this relationship bringing into consideration the inhabitation of features and capabilities of these components. This relationship obscures the equilibrium that is associated with essential axioms that are usually three enabling representations of systems in the mathematical form with each ensuring that a certain class of transformation is emphasized upon.

The second issue is the approach of responding to the problem path of dependence that leads to having varied interpretations of duality in what it is trying to represent (Pezzey, 1997). Asheim (1994) states that despite the existence of these unique differences, however, most economies have proven that some agents tend towards quasi-linear and thus resulting in constraint structure that tends to be isomorphic to the physical system structures that results in classical thermodynamic equations of state. On the other hand, entropies are the exact equivalents of thermodynamics potentials and are capable of it been constructed, and it operates in a way that is comparable to its economic counterparts that are free energies.

An example of such a situation in quasi-linear economies is the idea of Walrasian that allows the formulation of price, which is an analog of force balance that can easily be realized. Pezzey (1997) says that other economic models that are more general raises methodological problems because most of them illustrate complex models that can easily exhibit physical path dependence. However, the unique difference that exists between economic methodology and thermodynamic methodology is that in the case of economic methodology, the movement is deemed irreversible from the disequilibrium endowment, that original was equilibrium because of trade requirements, which are commonly voluntary.

On the other hand and in contrast, thermodynamic is based on transformations that are reversible and are capable of leading the measurement of structure systems (Asheim, 1994). Since the idea of reversibility is sketchy is such situations, it is paramount to look for alternative ways but based on the Walrasian notion of preservation of wealth is then introduced.

References

Asheim, G. B. (1994), 'Net national product as an indicator of sustainability', Scandinavian Journal of Economics 96: 257–265.

Dasgupta, P. S. and G. M. Heal (1974), 'The optimal depletion of exhaustible resources', Review of Economic Studies 41 (Symposium issue): 3–28.

Dixit, A., P. Hammond and M. Hoel (1980), 'On Hartwick's rule for regular maximin paths of capital accumulation and resource depletion', Review of Economic Studies 47: 551–556.

Hamilton, K. (1995), 'Sustainable development, the Hartwick rule and optimal growth', Environmental and Resource Economics 5: 393–411.

Hartwick, J. (1977), 'Intergenerational equity and the investing of rents from exhaustible resources', American Economic Review 66: 972–974.

Norgaard, R. (1991), 'Sustainability as intergenerational equity: The challenge to economic thought and practice', Report no. IDP 97, the World Bank.

Pezzey, J. (1997) 'Sustainability constraints versus 'optimality' versus intertemporal concern, and axioms versus data', Land Economics 73: 448–466.

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