An Economic analogy to Electrodynamics

TL;DR

This paper explores an analogy between electrodynamics and economic systems, deriving laws similar to Maxwell's equations and applying them to economic phenomena like Phillips curve, recession, and Black-Scholes formula.

Contribution

It introduces a novel framework mapping economic variables to electrodynamics laws, providing a new perspective on economic modeling.

Findings

Derived Maxwell-like equations for economic systems

Reproduced Phillips curve, recession, and Black-Scholes formula within the analogy

Proposed a unified approach linking physics and economics

Abstract

In this note, we would like to find the laws of electrodynamics in simple economic systems. In this direction, we identify the chief economic variables and parameters, scalar and vector, which are amenable to be put directly into the crouch of the laws of electrodynamics, namely Maxwell's equations. Moreover, we obtain Phillp's curve, recession and Black-Scholes formula, as sample applications.