Hamiltonian economics

Hamiltonian economics uses the mathematical framework of Hamiltonian mechanics—originally from physics—to analyze economic systems. In this approach, the economy is viewed as a dynamic system characterized by variables like wealth and capital, with a "Hamiltonian" function representing the total "energy" or value. It helps model how economic variables evolve over time, considering constraints and optimal decisions. This method allows economists to study complex, interdependent economic processes systematically, optimizing outcomes and understanding stability, much like tracking how physical systems change, but applied to economic behaviors and policies.