Budgeting and Entropy in the Iran's Economy: An Application of the Econophysics

Document Type : Scientific paper

Authors

1 Department of Economics, Faculty of Economic, Management and Social Sciences, Shiraz University, Shiraz, Iran

2 Associate professor, Department of Economics, Shiraz University, Shiraz, Iran.

3 Department of Physics, Shiraz ,University, Shiraz, Iran.

Abstract

The main purpose of this study is to calculate and analyze the entropy associated with budget allocation and to study the effect of budgeting on the entropy process. To achieve this goal, the Shannon entropy and the budget data have been used between 21 chapters in the period of 2007 to 2009. To calculate entropy, at first, the density distribution function is estimated. To calculate the density functions, the Lorenz curve has been used for approved budgets. The results indicate that there is a high degree of asymmetry and disorder in the distribution of resources between factors and the non-uniformity distribution. The results also show that during the study period, budget management has not been efficient and has led to an increase in the entropy of the economy and the waste of resources. The most volatile fluctuations in the entropy value are in the period of 2008 to 2012, which shows that the economic system has been less stable in these periods than in the period of 2013 to 2018. Also, changes in government have led to a slight improvement in resource distribution management, but it has not had a dramatic effect.

Keywords

References

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Macroeconomics Research Letter
Volume 15, Issue 29
August 2020
Pages 99-129

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History

  • Receive Date: 31 July 2019
  • Revise Date: 26 January 2020
  • Accept Date: 16 September 2020

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