Asset Dynamics and Dissipative Structures in Open Economies: Economics as a Prescription for the "Thermal Death" of Equilibrium

Kazuhito Kitamura

No zah6e_v1, SocArXiv from Center for Open Science

Abstract: This paper deepens the "Equilibrium Theory Endogenizing Imbalances" based on asset dynamics, as presented in the previous study (Kitamura, 2025), by incorporating concepts from thermodynamics and statistical mechanics. While the previous work proposed a model where imbalances are perpetuated through asset preference and capital diffusion, this study extends the framework into a model where "effective asset potential"—defined as the asset level divided by the rate of return on assets—acts as the driving force behind capital flows. It demonstrates a mechanism in which the capital efficiency of each nation significantly determines its economic trajectory. Through observations using multilateral data, this paper reveals that individual economies exist under a tension between "subjective equilibrium," aimed at utility maximization, and the "pressure of entropy increase" inherent in asset dynamics. Consequently, the global economy has polarized into "self-organizing economies" that concentrate and accumulate capital, and "diffusive economies" that primarily disperse and dissipate capital. This paper presents a novel perspective that views the global economy as a "dissipative structure" maintained through the interdependence of these distinct phases. Based on this analysis, the paper argues that for an economic system to remain sustainable, it is essential to involve maintaining the gradient of asset potential within the system by promoting innovation and eliminating "stagnation" through redistribution policies. Ultimately, this paper proposes that what economics terms "equilibrium" is equivalent to "thermal death" in physics; therefore, the goal of economics should be the avoidance rather than the realization of such a state, making the perspective of "entropy management" indispensable.

Date: 2026-01-31
New Economics Papers: this item is included in nep-hme
References: Add references at CitEc
Citations:

Downloads: (external link)
https://osf.io/download/69804b22ab9337511bcd77ec/

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:zah6e_v1

DOI: 10.31219/osf.io/zah6e_v1

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().