In economic thermodynamics, an economic system is boundaried system comprised of producers, consumers, and markets, studied or modeled from an open, closed, or isolated perspective. [1] Economic systems tend to be studied from a statistical thermodynamics point of view, wherein the Boltzmann equation, S = k ln W, tends to be employed, and efforts are made to find a type of “global energy” function, similar to internal energy. [2]
References
1. Asafu-Adjaye, John. (2005). Environmental Economics for Non-economists (section: Thermodynamics and the Environment, pgs. 18-26). World Scientific.
2. Schulz, Michael. (2003). Statistical Physics and Economics (ch. 4: Economic Systems, pgs. 157-194, section: Thermodynamics and Economics, pg. 174-80). Springer.
Further reading
● Tsirlin, A.M., Kazakov, V., Alimova N.A., Ahremenkov, A.A. (2005). “Thermodynamic Model of Capital Extraction in Economic Systems” (link) Interdisciplinary Description of Complex Systems, 3(1): 1-16.
