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Entropy and Economic Modelling

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  • D F Batten
  • J R Roy

Abstract

Entropy-maximizing models have been focused predominantly at the microscopic level of social and economic activities, their use being advocated by urban geographers, mathematicians, and microeconomists. By maintaining a sharp distinction between the behavioural and statistical aspects of entropy, various submodels may be formulated to generate the most probable pattern of individual choice behaviour. It may nevertheless be possible to regard each submodel of activity as an essential component of some larger, more complex macromodel of the entire economy. Various forms of (simultaneous or sequential) macromodels could then be investigated by examining alternative linkage arrangements between the behavioural submodels.

Suggested Citation

  • D F Batten & J R Roy, 1982. "Entropy and Economic Modelling," Environment and Planning A, , vol. 14(8), pages 1047-1061, August.
    • Handle: RePEc:sae:envira:v:14:y:1982:i:8:p:1047-1061
    DOI: 10.1068/a141047
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    Cited by:

    1. Popkov, Yu. S., 2006. "New class of multiplicative algorithms for solving of entropy-linear programs," European Journal of Operational Research, Elsevier, vol. 174(3), pages 1368-1379, November.

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