Informed Control Over Inputs and Extent of Industrial Processing

David A. Hennessy
June 2005  [05-WP 398]

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Suggested citation:

Hennessy, D.A. 2005. "Informed Control Over Inputs and Extent of Industrial Processing." Working paper 05-WP 398. Center for Agricultural and Rural Development, Iowa State University.


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