The Entropic Markov Wealth Model (EMWM): System and Method for Predicting Financial Sustainability Using Entropy-Weighted Markov Transitions and Behavioral Coefficients

The Entropic Markov Wealth Model (EMWM) presents a novel method for forecasting financial sustainability by integrating entropy-based disorder measures and behavioral-energy coefficients into a probabilistic state model.

The framework models transitions among key wealth states—Growth, Drift, Decay, and Renewal—through entropy-weighted probabilities that reflect dynamic behavioral patterns and external influences.

It introduces a Wealth Stability Index (WSI), quantifying systemic resilience and behavioral bias effects in individual, corporate, and national financial systems.

This paper provides a conceptual overview of the model, mathematical logic, and use cases across financial forecasting, portfolio optimization, and macroeconomic stability assessment.

Patent Pending – U.S. Application No. 19/362,402.