Publication Date

6-2005

Series Number

05-WP 398

Abstract

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.

Publication Information

This working paper was published as Hennessy, David A., "Informed control over inputs and extent of industrial processing," Economics Letters 94 (2007): 372–377, doi:10.1016/j.econlet.2006.08.022.

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