time

In EE time is a fundamental ontological category which is different from the linear time in standard economics. As a consequence of the first law of thermodynamics (>entropy), irreversibility of processes is a necessary cause of the directedness of time ("arrow of time"). However, even more fundamental is the definition of time as a structure of simultanous events on the level of >elementary processes with different time scales. Time is not a one-dimensional line running from the past into the future with homogenous properties, but a complex structure of simultaneities. As a result, change in time is always accompanied with structural change, so that the general entropic irreversibility is reinforced by structural asymmetries.

Every elementary process runs on a specific time scale (like different generation times in living organisms). This time scale is called "Eigen-time", "own scale of time". Differences in Eigen-times can be ascertained by comparing starting points and end-points of processes, like the rhythm of seasons with the life-cycle of plants. The complex interaction of Eigen-times leads to the emergence of events if different rhythms concur at certain junctures. Very often, these events are >singularities, because there is no chance that the simultaneity will happen again.

The sequence of these events is called "history". Therefore, in EE historical analysis plays an important role in research. The interaction of Eigen-times leads to the demarcation of "epochs" as demarcated by defining events where many simultaneous events occur that impact the structure of systems in a significant way. Time is therefore an important aspect of >order in economic systems. Many institutions in the economy relate to time, as for example >money which is a universal means to store value for future uses.

Present, past and future can only be defined with reference to the position of a particular individual. Past is defined as the irreversible result of processes, future is defined as fundamental uncertainty regarding the further flow of processes, and in particular the further occurrence of simultaneities. The other side of the uncertain future is freedom of >decision: Actors can change the flow of events by their own >action.

Hence, the uncertainty of the future is constitutive for the possibility of >entrepreneurial action. Irreversibility is constitutive for >capital formation, which more exactly means the increase of the complexity of the time structure of production via the creation of elementary processes with longer Eigen-times.

Basic References

A very good survey of concepts of time with special emphasis on entropy and capital formation is:
Malte Faber, John L.R Proops, Evolution, Time, Production and the Environment, Berlin et al.: 1998.

For some more reflections on time, see
McKenzie on time

Semantic Field
order
time
process   capital   decision