Macroeconophysics indicator of economic efficiency

Leonardo H.S. Fernandes, Fernando H.A. de Araújo, Igor E.M. Silva and Jusie S.P. Neto

Physica A: Statistical Mechanics and its Applications, 2021, vol. 573, issue C

Abstract: This paper analyses economic growth, which is one of the most critical macroeconomic themes. We use quarterly GDP time series that was well adjusted for each country through seven different mathematical functions. Then, we calculated the first derivative of these functions to obtain the average economic growth per quarter of each country and the second derivative that measures the instantaneous economic acceleration. Based on the information theory quantifiers, we propose a novel economic indicator called the Macroeconophysics indicator of economic efficiency (MIEE) that shows how efficient a country is in terms of allocating resources from economic growth to convert them simultaneously into a long-term virtuous cycle and, this way, maximizing welfare. Given this, our findings show that the USA, France, and Belgium are present a high value of MIEE.

Keywords: Economic growth; Gross domestic product; Economic efficiency; Shannon–Fisher causality plane; Macroeconophysics (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:573:y:2021:i:c:s0378437121002181

DOI: 10.1016/j.physa.2021.125946

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