Leontief Meets Shannon - Measuring the Complexity of the Economic System

Autor:	Zachariah, Dave, Cockshott, Paul
Rok vydání:	2017
Předmět:	Quantitative Finance - General Finance Physics - Physics and Society Statistics - Applications
Druh dokumentu:	Working Paper
Popis:	We develop a complexity measure for large-scale economic systems based on Shannon's concept of entropy. By adopting Leontief's perspective of the production process as a circular flow, we formulate the process as a Markov chain. Then we derive a measure of economic complexity as the average number of bits required to encode the flow of goods and services in the production process. We illustrate this measure using data from seven national economies, spanning several decades.
Databáze:	arXiv
Externí odkaz:	http://arxiv.org/abs/1705.02154 Zobrazit plný text záznamu View this record from Arxiv