<p>I was considering economics, and how a lot of economics tends to use a water metaphor as a descriptive mechanism.  Ex: market liquidity, &quot;investment evaporated&quot;, &quot;market flows around obstructions&quot;,...</p>
<p>From these, I became curious if the evaporation / condensation mechanism actually shows up in economic theory much?</p>
<p>These searches tend to be quite difficult, as most of the literature is: &quot;Geopolitical Economics of Water&quot;, &quot;Impact of Evaporation Losses from Reservoirs&quot;, &quot;Economic Assessment of Alternative Evaporation&quot;, &quot;Thermo-economic performance of evaporation&quot;, ect...</p>
<p>I found a couple:</p>
<ul>
<li><p><a href="https://www.cfm.com/wp-content/uploads/2022/12/306-2000-wealth-condensation-in-a-simple-model-of-economy.pdf" rel="nofollow noreferrer">Wealth condensation in a simple model of
economy</a></p>
</li>
<li><p><a href="https://iopscience.iop.org/article/10.1209/0295-5075/110/58002" rel="nofollow noreferrer">Bose-Einstein condensation mechanism in economic system</a></p>
</li>
</ul>
<p>It seems like there might be others, as industries might evaporate and condense later.  Liquidity might pool and evaporate.  Cash clouds that rain somewhere (helicopter money?)  In Econometrics maybe the behavior is statistically similar enough for models to work?</p>
<p><em><strong>Question:</strong></em> Are there other known economics mechanisms that behave like evaporation or condensation?</p>

CC BY-SA 4.0
2023-11-06T19:00:30.247Z
The papers you mention are not economics. They are physics papers written by physicists and published in physics journals.
Michael Greinecker
CC BY-SA 4.0
2023-11-07T13:36:17.513Z
Hi @G.Putnam. I don't know of an analogy for condensation/evaporation mechanism in economics. But, one for your general collection going forward may be: "trickle down economics"
EB3112
CC BY-SA 4.0
2023-11-07T18:23:52.340Z
@EB3112 Thanks for the suggestion.  Hadn't thought of the "trickle down economics."  Yet, that does likely have water behavior.  Watery wealth trickling through cracks to the lower echelons of society.  Possibly condensation/evaporation.  All the money's in the cloud, and its trickling down on the normal parts  of society.
G. Putnam
<econometrics><theory><liquidity><model><resource-allocation>
Water Economic Metaphor - Evaporation / Condensation
G. Putnam
# Water Economic Metaphor - Evaporation / Condensation

(Asked by: username_0 on 2023-11-06)

I was considering economics, and how a lot of economics tends to use a water metaphor as a descriptive mechanism. Ex: market liquidity, "investment evaporated", "market flows around obstructions",...

From these, I became curious if the evaporation / condensation mechanism actually shows up in economic theory much?

These searches tend to be quite difficult, as most of the literature is: "Geopolitical Economics of Water", "Impact of Evaporation Losses from Reservoirs", "Economic Assessment of Alternative Evaporation", "Thermo-economic performance of evaporation", ect...

I found a couple:

* [Wealth condensation in a simple model of
  economy](https://www.cfm.com/wp-content/uploads/2022/12/306-2000-wealth-condensation-in-a-simple-model-of-economy.pdf)
* [Bose-Einstein condensation mechanism in economic system](https://iopscience.iop.org/article/10.1209/0295-5075/110/58002)

It seems like there might be others, as industries might evaporate and condense later. Liquidity might pool and evaporate. Cash clouds that rain somewhere (helicopter money?) In Econometrics maybe the behavior is statistically similar enough for models to work?

***Question:*** Are there other known economics mechanisms that behave like evaporation or condensation?

**Tags:** econometrics, theory, liquidity, model, resource-allocation

> **Comments:**
> **username_1**: The papers you mention are not economics. They are physics papers written by physicists and published in physics journals.  
> **username_2**: Hi @G.username_0. I don't know of an analogy for condensation/evaporation mechanism in economics. But, one for your general collection going forward may be: "trickle down economics"  
> **username_0**: @username_2 Thanks for the suggestion.  Hadn't thought of the "trickle down economics."  Yet, that does likely have water behavior.  Watery wealth trickling through cracks to the lower echelons of society.  Possibly condensation/evaporation.  All the money's in the cloud, and its trickling down on the normal parts  of society.  

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