Generalization of the Aoki-Yoshikawa sectoral productivity model based on extreme physical information principle

TL;DR

This paper generalizes the Aoki-Yoshikawa productivity model using information theory, providing exact solutions and demonstrating potential for broader applications beyond economics.

Contribution

It introduces a continuous variable extension of the model using the extreme physical information principle, offering a novel analytical approach.

Findings

Exact solutions derived using information theoretical methods

First order approximation aligns with traditional models

Applicable to various research fields

Abstract

This paper presents a continuous variable generalization of the Aoki-Yoshikawa sectoral productivity model. Information theoretical methods from the Frieden-Soffer extreme physical information statistical estimation methodology were used to construct exact solutions. Both approaches coincide in first order approximation. The approach proposed here can be successfully applied in other fields of research.