Financial heat machine
Abstract
We consider dynamics of financial markets as dynamics of expectations and discuss such a dynamics from the point of view of phenomenological thermodynamics. We describe a financial Carnot cycle and the financial analog of a heat machine. We see, that while in physics a perpetuum mobile is absolutely impossible, in economics such mobile may exist under some conditions.
- Publication:
-
Physica A Statistical Mechanics and its Applications
- Pub Date:
- May 2005
- DOI:
- 10.1016/j.physa.2004.11.046
- arXiv:
- arXiv:cond-mat/0408560
- Bibcode:
- 2005PhyA..350..487K
- Keywords:
-
- Condensed Matter - Other Condensed Matter;
- Physics - Physics and Society;
- Quantitative Finance - General Finance
- E-Print:
- Physica A, 350, 487-490 (2005)