Calculation of the Production Function through Entropy: A Model from Econophysics

Isabel Cristina Betancur (), Efraín Arango-Sánchez (), à lvaro Hernán Bedoya-Calle (), Francisco J. Caro- Lopera () and Éver Alberto Velásquez Sierra ()
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Isabel Cristina Betancur: Universidad de Medellín
Efraín Arango-Sánchez: Universidad de Medellín
à lvaro Hernán Bedoya-Calle: Universidad de Medellín
Francisco J. Caro- Lopera: Universidad de Medellin
Éver Alberto Velásquez Sierra: Universidad de Medellín

Lecturas de Economía, 2025, issue 103, 77-106

Abstract: From an economic perspective, the problems associated with production require a model for its estimation. These estimations are typically made using the Cobb-Douglas production function, which is derived from least-squares adjustment. However, several authors have proposed alternative methods for calculating production based on the relationship between economic and thermodynamic problems. Our study provides a method for calculating the production function through entropy, which explicitly considers the contributions of labor and capital. In this way, we apply the model to the data presented in the Cobb-Douglas study on the production of the manufacturing sector in the United States. Our results accurately describe the production data, highlight the need to estimate the Boltzmann constant in the economic model, and provide a method for determining its value

Keywords: Economic Entropy; Cobb-Douglas function; production; Microeconomics; Econophysics (search for similar items in EconPapers)
JEL-codes: A12 C02 D24 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:lde:journl:y:2025:i:103:p:77-106

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DOI: 10.17533/udea.le.n103a356738

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