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From The Entropy Law To "Farfala Effect" And Their Economic Perception

Author

Listed:
  • Constanta Iacob

    (University of Craiova Faculty of Economics and Business Administration)

  • Ana Maria Cepoiu

    (College “Stefan Odobleja”)

Abstract

It is said that theories explain laws, and laws are facts of observation. At the first sight these two concepts reduced to axioms are perfectly logical and consistent, but the law is a valid creation only in an unit of time, starting with the laws of physics and finishing with the ones of economics who are no more than temporal realities. However, there are some laws of physics that have not lost their validity and have not become non-realities or factual realities because the universe has its own mechanisms of self-adjustment, self-organization. In other words, regardless of the chaos that created the universe, there was a natural and logical reorganization based on the laws of physics that have always existed. Therefore the laws of physics and economic laws were discovered and not invented. Some authors put an equal sign between the disorder (entropy) and chaos, others on the contrary are making differences between the two concepts, but both consider an unpredictable behavior, sensitive to change and conditionings which have became, in the most random situations, issues that we can easily see in the economic field. The laws of physics are the same for all observers, but the perception is different, something that explains human behavior that has lost sight of the need to ask about the possible consequences of the changes which brings them to its original state of nature, the fact that the report of it and the natural environment represents the basis of existence and the relation with the social environment determines quality of life. In this context we would like to submit to attention some aspects concerning the entropic nature and also the chaos theory found in economy.

Suggested Citation

  • Constanta Iacob & Ana Maria Cepoiu, 2012. "From The Entropy Law To "Farfala Effect" And Their Economic Perception," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 2(40), pages 23-30.
  • Handle: RePEc:aio:aucsse:v:2:y:2012:i:40:p:23-30
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    More about this item

    Keywords

    creation; disorder; chaos theory; the farfala effect; resources;
    All these keywords.

    JEL classification:

    • B30 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - General
    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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