An Attempt to Construct an Economic System with Reference to Physics

DOI: https://doi.org/10.62517/jiem.202503107

Author(s)

Jinpeng Deng

Affiliation(s)

School of Finance, Nankai University, Tianjin, China

Abstract

Starting from Adam Smith, economics has gone through many stages in its development for more than 200 years, and many different schools of economics have emerged, which have very different views, some of which are even diametrically opposed to each other. In order to make the economic theory have a more scientific and coordinated development, minimize the controversy and contradiction between different schools of economics; this paper absorbs the theories of famous economists, using analogical thinking, with reference to the more mature discipline, physics, to try to build a system of economics. After some basic quantities for correspondence, this paper tries to integrate different schools of economic theory, through the appropriate models. A good explanation for price fluctuations is provided, and tax friction is added to further validate the model; finally, some conclusions are introduced through the system and expanded accordingly. The establishment of this system can help to realize the unification of the dimension in economics, so as to understand the essence of economics more clearly, and it is expected to bring economics closer to science.

Keywords

Physics; Economics; Analogy; System; Model; Price Volatility

References

[1]Smith, Adam. "An Inquiry into the Nature and Causes of the Wealth of Nations." Journal of the Early Republic 35(1976). [2]Huang Jinkui. Six Revolutions and Three Great Syntheses in the History of Economics - The New Economics Revolution and the Economics of the Great Scientific System (II) Productivity Research, 2012, 000(008): 1-4. [3]Keynes J M. General Theory of Employment, Interest and Money. China Social Sciences Pu, 1965. [4]Friedman M, Friedman R D. Free to Choose: A Personal Statement. Canadian Public Policy, 1980, 8(2). [5]Kahneman D. Thinking, Fast and Slow. Fortune, 2011, 172(1). [6]Newton I S, Newton I S, Huygens C, et al. Mathematical principles of natural philosophy. Dawsons, 2007. [7]Hicks, John R., and Roy GD Allen. "A Reconsideration of the Theory of Value." The Foundations of Price Theory Vol 4. Routledge, 2024. 33-82. [8]Gao Hongye. Western Economics. Microcosmic section. China Renmin University Press, 2011.