Informed Control Over Inputs and Extent of Industrial Processing
David A. Hennessy
June 2005 [05-WP 398]
Stylized facts regarding the industrial process include emphases on obtaining information about and control over the quality of raw materials. We provide a model that establishes conditions under which informed control involves ensuring uniformity in inputs and increased uniformity encourages more extensive processing. We show when the Boltzmann-Shannon entropy statistic is an appropriate measure of uniformity.
Keywords: entropy, homogeneous inputs, industrialization, information technologies, sorting.
JEL classification: D2; L1
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