Using this blog as an online set of research notes (about that which I don’t mind sharing ) — suppose that we try using an equilibrium-based approach of some sort for modeling what we all know is a very non-equilibrium world. Which formulation, Helmholtz or Gibbs, works best for us? Helmholtz free energy is at constant temperature and volume. It is denoted as A, where the defining equation is A = U-TS, where U is enthalpy, T is temperature, and…
Continuing with Beinhocker’s Origin of Wealth, it is important to distinguish carefully between some of the ideas that Beinhocker is expounding. While overall, he is doing a good job of bringing in many related thoughts and ideas, there is a slight tendency towards “mushing.” In that note, I’d like to suggest that we discern carefully between ideas involving utility (Origins, hardcover; pp. 34 & 37), and equilibrium. On pg. 34, Beinhocker begins a discussion of how utility is an underlying…
Over the last few months, questions of not only wealth and finances, but the underpinnings of our entire financial structure, have become paramount in many of our minds. We — that usually means you and me — and right now means the world collectively — have largely misunderstood the world’s financial structure over recent years. (Those who HAVE accurately understood are not only more secure, but substantially richer by now.) Most of us are current on “what went wrong.” Most…