The thermodynamic principles as the theoretical basis of fair remuneration

  • Authors

    • MieczysÅ‚aw Dobija Cracow University of Economics
    • Jurij Renkas Cracow University of Economics
    2020-12-25
    https://doi.org/10.14419/ijpr.v9i1.31247
  • Thermodynamic, Economic Constant, Fair Remuneration, Capital, Natural Science, Economic Science.

  • Abstract

    Thermodynamics is the key to solving many economic problems. Since the human body is driven by heat engines, there is a loss of energy source. Measuring this loss means it is possible to indicate the size of a fair wage. Another version of the second principle justifies the amount of depreciation of real assets, such as machinery and equipment. A significant purpose of the article is to indicate that the category of capital cannot be understood without knowing the first and second principle of thermodynamics. The main aim is to present the theory of equitable remuneration developed using the second principle of thermodynamics and the discovered economic constant. Theoretical research leads to the creation of a model of capital and a model of fair pay with the understanding of the existence of an economic constant quantifying the action of natural forces on capital growth. Empirical research estimates the size of the constant and verifies the fairness of remuneration. The research reveals the existence of an economic constant necessary in capital theory, especially in the field of remuneration for work. Models for measuring human capital of employees and formulas enabling calculation of fair remuneration and its updating are presented. Additionally, using the entropic version of the second principle, the depreciation amounts of fixed assets are determined. The main conclusion of the presented research and the formulated theory is that thermodynamics is essential for the correct understanding of the category of capital defining as the abstract ability to perform work.

     

     

  • References

    1. [1] Atkins, P. (2005). Galileo’s finger: The ten great ideas of science. Poland: Dom Wydawniczy Rebis.

      [2] Atkins, P. (2007). Four laws that drive the universe. New York: Oxford University Press.

      [3] Bliss Ch., Cohen A.J., Harcourt G.C. (eds.) (2005). Capital Theory, Vol. 1-3. Bodmin, Cornwall: Edward Elgar Publishing Limited.

      [4] Dobija, M. (1998). How to place human resources into the balance sheet. Journal of Human Resource Costing & Accounting, 3(1), 83-92.

      [5] Dobija, M. (2007). Abstract nature of capital and money, [in:] L.M. Cornwall (Ed.), new developments in banking and finance (pp. 89-114). New York: Nova Science Publishers. https://doi.org/10.1108/eb029044.

      [6] Goetzmann, W.N., & Ibbotson, R.G. (2006). History and the Equity Risk Premium, [in:] Goetzmann W.N., Ibbotson R.G. (ed.), The Equity Risk Premium: Essays and Explorations, Yale School of Management, Oxford University Press.

      [7] Pikulska-Robaszkiewicz, A. (1999). Usury in the state and law of Republican Rome (Polish language: Lichwa w paÅ„stwie i prawie republikaÅ„skiego Rzymu), Wydawnictwo Uniwersytetu Åódzkiego, Åódź.

      [8] Kozioł, W. (2011). Constant of potential growth in the calculation of human capital (Polish language: Stała potencjalnego wzrostu w rachunku kapitału ludzkiego), Nierówności Społeczne w Wzrost Gospodarczy, Uniwersytet Rzeszowski, Zeszyt nr 19, s. 252-260.

      [9] Pacioli, L. (1494). Summa de arithmetica, geometría, proportioni et proportionalità , Vinegia: P. de Paganini, Wenecja. https://doi.org/10.5479/sil.440357.39088007406663.

      [10] Kurek, B. (2011). The deterministic risk premium hypothesis, Cracow: Monografie, Wydawnictwo Uniwersytetu Ekonomicznego w Krakowie.

      [11] Kurek, B. (2012). An estimation of the capital growth rate in business activities. Modern Economy, 3(4), 364–372. doi: 10.4236/me.2012.34047. https://doi.org/10.4236/me.2012.34047.

      [12] Renkas, J. (2016). Wage inequalities and the economic constant of potential growth (Polish language: Nierówności płacowe a stała ekonomiczna potencjalnego wzrostu), Nierówności Społeczne a Wzrost Gospodarczy, Zeszyt nr 47(3), pp. 466-480, https://doi.org/10.15584/nsawg.2016.3.34.

      [13] Renkas, J. (2013). Wage expectations in light of human capital measurement theory. Argumenta Oeconomica Cracoviensia, 9(9), 29-42. https://doi.org/10.15678/AOC.2013.0902.

  • Downloads

  • How to Cite

    Dobija, M., & Renkas, J. (2020). The thermodynamic principles as the theoretical basis of fair remuneration. International Journal of Physical Research, 9(1), 1-6. https://doi.org/10.14419/ijpr.v9i1.31247

    Received date: 2020-11-04

    Accepted date: 2020-12-12

    Published date: 2020-12-25