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Stokes integral of economic growth: Calculus and the Solow model
Authors:Jürgen Mimkes
Institution:Physics Department, Paderborn University, D-33096 Paderborn, Germany
Abstract:Economic growth depends on capital and labor and two-dimensional calculus has been applied to economic theory. This leads to Riemann and Stokes integrals and to the first and second laws of production and growth. The mathematical structure is the same as in thermodynamics, economic properties may be related to physical terms: capital to energy, production to physical work, GDP per capita to temperature, production function to entropy. This is called econophysics. Production, trade and banking may be compared to motors, heat pumps or refrigerators. The Carnot process of the first law creates two levels in each system: cold and hot in physics; buyer and seller, investor and saver, rich and poor in economics. The efficiency rises with the income difference of rich and poor. The results of econophysics are compared to neoclassical theory.
Keywords:Econophysics  89  65  Gh  Calculus  Stokes integral  Profit  Production  Trade  Economic growth
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