• Title of article

    Econophysical visualization of Adam Smith’s invisible hand

  • Author/Authors

    Cohen، نويسنده , , Morrel H. and Eliazar، نويسنده , , Iddo I.، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2013
  • Pages
    11
  • From page
    813
  • To page
    823
  • Abstract
    Consider a complex system whose macrostate is statistically observable, but yet whose operating mechanism is an unknown black-box. In this paper we address the problem of inferring, from the system’s macrostate statistics, the system’s intrinsic force yielding the observed statistics. The inference is established via two diametrically opposite approaches which result in the very same intrinsic force: a top-down approach based on the notion of entropy, and a bottom-up approach based on the notion of Langevin dynamics. The general results established are applied to the problem of visualizing the intrinsic socioeconomic force–Adam Smith’s invisible hand–shaping the distribution of wealth in human societies. Our analysis yields quantitative econophysical representations of figurative socioeconomic forces, quantitative definitions of “poor” and “rich”, and a quantitative characterization of the “poor-get-poorer” and the “rich-get-richer” phenomena.
  • Keywords
    complex systems , Intrinsic forces , Langevin equation , Poor-get-poorer , Rich-get-richer , entropy , Distribution of wealth
  • Journal title
    Physica A Statistical Mechanics and its Applications
  • Serial Year
    2013
  • Journal title
    Physica A Statistical Mechanics and its Applications
  • Record number

    1736542