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E-raamat: Classical Econophysics

(The Open University), (Wake Forest University, USA), (Heriot-Watt University, UK), (University of Maryland, USA), (University of Glasgow, UK)
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This monograph examines the domain of classical political economy using the methodologies developed in recent years both by the new discipline of econo-physics and by computing science. This approach is used to re-examine the classical subdivisions of political economy: production, exchange, distribution and finance.

The book begins by examining the most basic feature of economic life – production – and asks what it is about physical laws that allows production to take place. How is it that human labour is able to modify the world? It looks at the role that information has played in the process of mass production and the extent to which human labour still remains a key resource. The Ricardian labour theory of value is re-examined in the light of econophysics, presenting agent based models in which the Ricardian theory of value appears as an emergent property. The authors present models giving rise to the class distribution of income, and the long term evolution of profit rates in market economies. Money is analysed using tools drawn both from computer science and the recent Chartalist school of financial theory.

Covering a combination of techniques drawn from three areas, classical political economy, theoretical computer science and econophysics, to produce models that deepen our understanding of economic reality, this new title will be of interest to higher level doctoral and research students, as well as scientists working in the field of econophysics.

Arvustused

'A challenging book which sheds further light on the field of econophysics as an interplay among economics, physics, and information theory, reading the past and the present with new analytical tools, and one which uses the past to provide new visions.'-- Nicola De Liso, University of Salento, Italy

List of Figures
ix
List of Tables
xv
List of Digressions
xvii
Acknowledgements xix
Introduction 1(4)
PART I Work, information and value
5(132)
1 Problematizing labour
7(23)
1.1 Watt on work
7(5)
1.2 Marx: the architect and the bee
12(7)
1.3 The demonic challenge
19(1)
1.4 Entropy
20(10)
2 Problematizing information
30(17)
2.1 The Shannon--Weaver concept of information
30(8)
2.2 Entropy reductions in action programs
38(1)
2.3 Alternative views of information
38(9)
3 Labour productivity
47(27)
3.1 Raising production in general
47(6)
3.2 Accelerated production
53(5)
3.3 Parallelizing production
58(16)
4 Babbage and the birth of digital technology
74(11)
4.1 Copy and calculating
74(1)
4.2 Tables
75(2)
4.3 Prony, Babbage and the division of mental labour
77(4)
4.4 Babbage's machines
81(4)
5 From machines to the universal machine
85(28)
5.1 Processing information
85(4)
5.2 Turing machines
89(8)
5.3 The universal Turing machine
97(2)
5.4 Decidability and the Church--Turing thesis
99(4)
5.5 The TM computability of markets
103(5)
5.6 RUR or Robots R Us
108(5)
6 Political economy: value and labour
113(24)
6.1 Smith and Watt
113(4)
6.2 Labour commanded as a measure of value
117(2)
6.3 Labour time and the determination of value
119(2)
6.4 Ricardo: clarity achieved
121(4)
6.5 Marx's contribution
125(5)
6.6 Two challenges to the labour theory of value
130(6)
6.7 The probabilistic response
136(1)
PART II Exchange, money and capital
137(124)
7 The probabilistic approach to economic variables
139(9)
7.1 Probabilistic models
139(9)
8 The statistical mechanics of money
148(13)
8.1 Introduction
148(1)
8.2 Boltzmann--Gibbs distribution
149(1)
8.3 Computer simulations
150(2)
8.4 Thermal machine
152(1)
8.5 Models with debt
153(2)
8.6 Boltzmann equation
155(1)
8.7 Non-Boltzmann--Gibbs distributions
156(2)
8.8 Nonlinear Boltzmann equation vs. linear master equation
158(1)
8.9 Conclusions
159(2)
9 A probabilistic approach to the law of value
161(23)
9.1 The law of value
161(2)
9.2 The model
163(5)
9.3 Simulation results
168(6)
9.4 Analysis
174(6)
9.5 Discussion
180(4)
10 Value in the capitalist economy
184(19)
10.1 Farjoun and Machover's approach to price
185(3)
10.2 Information content of prices
188(2)
10.3 Prices and the rate of profit
190(2)
10.4 Empirical evidence for labour theory of value
192(11)
11 Money, credit and the form of value
203(30)
11.1 Money and the form of value
203(3)
11.2 Two theories of money
206(4)
11.3 Monetary relations and records
210(4)
11.4 Money space, an illustration
214(6)
11.5 Commodity--money space
220(6)
11.6 The logical properties of financial transactions
226(7)
12 Banking and capital
233(28)
12.1 Bank credit
233(11)
12.2 The necessity of paper money
244(3)
12.3 Banking technology
247(7)
12.4 The interest rate
254(2)
12.5 Dominance of the financial sector
256(5)
PART III Class distribution of income
261(58)
13 A probabilistic model of the social relations of capitalism
263(29)
13.1 Introduction
263(1)
13.2 A dynamic model of the social relations of production
264(7)
13.3 Results
271(16)
13.4 A note on methodology
287(3)
13.5 Essential and inessential properties of capitalism
290(2)
14 Understanding profit
292(27)
14.1 Sraffa: profit and the technology matrix
293(5)
14.2 Kalecki: profit and monetary flows
298(2)
14.3 Demographics and the long-run rate of profit
300(19)
PART IV Information and coordination
319(22)
15 Hayek, information and knowledge
321(20)
15.1 Inadequacy of the price form
323(9)
15.2 Information flows under market and plan
332(5)
15.3 The argument from dynamics
337(4)
PART V Appendices
341(2)
Appendix A The law of value: proofs
343(3)
Appendix B The law of value: experimental details
346(1)
Appendix C A simple planning program
347(2)
Appendix D Profits in the SA model
349(4)
References 353(8)
Index 361
W. Paul Cockshott has a PhD in Computer Science from Edinburgh University and is currently Reader in Computer Science at University of Glasgow. Allin F. Cottrell is Professor of Economics at Wake Forest University, North Carolina and has a PhD from the University of Edinburgh. Gregory J. Michaelson is Professor of Computer Science at Heriot-Watt University, and is a Fellow of the British Computer Society. Ian P. Wright is a PhD student in Economics at the Open University. Victor M. Yakovenko is a Professor of Physics at the University of Maryland.