خلاصة:
An economic system is comprised of different primary flows that can be captured in macroeconomic models with complex network relations. Theoretically and empirically in this system, weak substitution or complementarity of environmental materials, like energy and other production factors such as capital, is undeniable. This is an effective critique on neoclassical economics. In this paper, we view the economy as a complex thermodynamic system in order to calculate the entropy generation, specifically the trend in entropy production in Iran over time. Entropy can be measured as the amount of waste and pollution produced by a system based on Georgescu-Rogen’s view. Using a conceptual model, we show the basic flows in a macroeconomic network (government, households, firms and financial sector), by focusing on the amount of wastes and other entropy generators and show how to calculate the overall entropy for an economic system. Furthermore, we demonstrate this approach using a mathematical model and literature from ecology and macroeconomics with the Iranian economy as a case study. Finally, by using statistical data from the World Bank, we show the three important indices of a system, growth, development and entropy values that increased in Iran during 1970–2014. As it is shown in results, the economic entropy of Iran is increasing.
ملخص الجهاز:
"The neoclassical theory of economic growth doesn't consider environment or energy as an important factor in production function and believes in the complete substitution of environmental and other factors (Solow,1956, 1957; Swan,1956; Schumpeter 1942; Barro and Sala-i-Martin,1995;Lucas, 1990; Mankiw et al.
Fig 2: Research Model, inflows in an economic complex system / Source: Research Findings Table 1: The flows and stocks of macroeconomic complex system of Iran's economy Sector Stock (dollars) Flow (dollars/time) Government Budgets Subsidies to people and firms, government size* productivity difference (Second Entropy cost); and the cost of health and crimes (Respiration cost).
Firms Assets The tax to government, waste and pollution* cost of recycling or cleaning the air (using World Bank data), machinery depreciation (as Respiration cost), average wage*employees, deposit in bank Financial Assets Loans to people, government and firms, corruptions (as Second Entropy cost), money outflows to the foreign countries Labor Active population * employment rate * annual income per capita Deposits in banks, migrants' number * annual income per capita, taxes to government Environment Estimated capacity of oil, gas, forest, mines, etc.
Fig 4: The ratio of waste and pollution cost divided by the constant GDP amount shows economic entropy / Source: Word Development Index, 2014 As it is shown in Figure (4), the economic entropy of Iran, based on the equation (17), is increasing and this implies that there have been changes to environmental materials (a production factor)."