2024/05/07 by Martin Pomares Calero, Calero, Martin Pomares
Economics, Econometrics and Finance · Mathematics · #Complex Systems and Time Series Analysis #Econometrics #Economics #Entropy (arrow of time) #FOS: Economics and business #General Finance (q-fin.GN) #Mathematical economics #Mathematics #Physics #Statistical physics #Thermodynamics
paper · pdf · doi:10.48550/arxiv.2407.00022
published in arXiv (Cornell University) (Cornell University)
openalex publication_date 2024/05/07 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
Entropy is a very useful concept from physics that tries to explain how a system behaves from a point of view of the thermodynamics. However, there are two ways to explain entropy, and it depends on if we are studying a microsystem or a microsystem. From a macroscopically point of view, it is important to describe if the system is a reversible system or not. However, form the microscopically point of view, the concept of chaos is related to entropy. In such case, entropy measures the amount of disorder into the system. Otherwise, the idea of connecting at the same time the analysis of the macro and micro system with the use of entropy it is not very common.