Tests of thermal macroeconomic theory on simulated micro-economies

Fuente: arXiv
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Main Authors: Luo, Yihang, MacKay, R. S., Chater, Nick
Format: Preprint
Published: 2024
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author Luo, Yihang
MacKay, R. S.
Chater, Nick
author_facet Luo, Yihang
MacKay, R. S.
Chater, Nick
contents In this paper, we test predictions of a new theory of macroeconomics, called "thermal macroeconomics." The theory aims to apply the mathematical structure of classical thermodynamics, including analogues of temperature and entropy, to predict aspects of the aggregate behaviour of populations of economic agents without analyzing their detailed interactions. We test the theory by comparing its predictions with the behaviour of a variety of simulated micro-economies in which goods and money can be exchanged between agents, confirming the predictions of the theory. The paper serves also to illustrate and make more tangible the predictions of thermal macroeconomics.
format Preprint
id arxiv_https___arxiv_org_abs_2410_20497
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Tests of thermal macroeconomic theory on simulated micro-economies
Luo, Yihang
MacKay, R. S.
Chater, Nick
General Economics
Economics
In this paper, we test predictions of a new theory of macroeconomics, called "thermal macroeconomics." The theory aims to apply the mathematical structure of classical thermodynamics, including analogues of temperature and entropy, to predict aspects of the aggregate behaviour of populations of economic agents without analyzing their detailed interactions. We test the theory by comparing its predictions with the behaviour of a variety of simulated micro-economies in which goods and money can be exchanged between agents, confirming the predictions of the theory. The paper serves also to illustrate and make more tangible the predictions of thermal macroeconomics.
title Tests of thermal macroeconomic theory on simulated micro-economies
topic General Economics
Economics
url https://arxiv.org/abs/2410.20497