Maximum entropy economics
University of Utah, Salt Lake City, UT, USA
2 University of Oxford, Oxford, UK
a e-mail: firstname.lastname@example.org
Published online: 7 July 2020
A coherent statistical methodology is necessary for analyzing and understanding complex economic systems characterized by large degrees of freedom with non-trivial patterns of interaction and aggregation across individual components. Such a methodology was arguably present in Classical Political Economy, but was abandoned in the late nineteenth century with a theoretical turn towards a purely mechanical approach to understanding social and economic phenomena. Recent advances in economic theory that draw from information theory and statistical mechanics offers a compelling statistically based approach to understanding economic systems based on a general principle of maximum entropy for doing inference. We offer a brief overview of what we consider the state of maximum entropy reasoning in economic research.
© EDP Sciences, Springer-Verlag GmbH Germany, part of Springer Nature, 2020