Econophysics as conceived by Meghnad Saha

TL;DR

This paper explores Meghnad Saha's pioneering efforts to develop a statistical physics model of the economy, aiming to understand and control income inequality through entropy-based mechanisms.

Contribution

It introduces Saha's innovative approach to applying statistical physics principles to economic inequality, a novel perspective in econophysics.

Findings

Saha's model suggests mechanisms to constrain income distribution spread.

The approach offers insights into minimizing societal inequality.

It bridges physics and economics through entropy concepts.

Abstract

We trace the initiative by Professor Meghnad Saha to develop a (statistical) physics model of market economy and his search for the mechanism to constrain the entropy maximized width of the income distribution in a society such that the spread of inequality can be minimized.