One year ago ... I put up my preprint. No journal has accepted it yet ...
Hard breaking in.Abstract
A general information equilibrium model in the case of ideal information transfer is defined and then used to derive the relationship between supply (in- formation destination) and demand (information source) with the price as the detector of information exchange between demand and supply. We recover the properties of the traditional economic supply-demand diagram. Infor- mation equilibrium is then applied to macroeconomic problems, recovering some common macroeconomic models in particular limits like the AD-AS model, IS-LM model (in a low inflation limit), the quantity theory of money (in a high inflation limit) and the Solow-Swan growth model. Information equilibrium results in empirically accurate models of inflation and interest rates, and can be used to motivate a “statistical economics”, analogous to statistical mechanics for thermodynamics.
Information Transfer Economics
One year ago ...
Jason Smith
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