Message-ID: <24099325.1075840251301.JavaMail.evans@thyme>
Date: Tue, 28 Nov 2000 00:12:00 -0800 (PST)
From: hemmat.safwat@enron.com
Subject: Some Personal Endeavors
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X-From: Hemmat Safwat
X-To: Kenneth Lay@ENRON
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Dr. Lay:

You will be pleasantly surprised to receive this e-mail from an Enron=20
Employee.

Please note that you are the first and only person in Enron that will know=
=20
about the endeavors that this e-mail discusses.

Background:
In 1986 while I was taking a graduate course in Economics as part of my MBA=
=20
program, I started to think that there exists some similarities between=20
Economics and Thermodynamics. In 1988, I discussed my initial thoughts with=
=20
Dr. Ibrahim Oweiss, professor of Economics at Georgetown University and we=
=20
agreed to investigate this topic. Since that time, I worked with Professor=
=20
Oweiss on and off investigating the subject. In the last couple of years, w=
e=20
started to make good progress, that was culminated recently by submitting=
=20
three papers for publication (see table below). =20


List of Papers
#=09Paper Title=09Abstract=09Status
1=09On the Analogies between =01&Economics=018 and =01&Thermodynamics=018=
=09Part I: =01&Basics=018
=09=09This part identifies certain analogies between Economics and Thermody=
namics.=20
The analogies between =01&Abilities=018 and =01&Energy=018, =01&Utility=018=
 and =01&Work=018,=20
=01&Capital=018 and =01&Heat=018, =01&Marginal Utility=018 and =01&Pressure=
=018, =01&Relative Income=018=20
and =01&Temperature=018, as well as =01&LABOR EFFORT=018 and =01&Entropy=01=
8 are discussed.
=09=09This part concludes that the suggested analogies bring about new appr=
oaches=20
that will explain some economic complexities by borrowing or building upon=
=20
some  concepts, theories and experiences in Thermodynamics.
=09=09Part II: =01&Applications=018
=09=09This second Part builds upon the basics introduced in Part I where an=
alogies=20
between Economics and Thermodynamics have been drawn. In this Part, the=20
application of the analogies is utilized to analyze some of the topics=20
economists deal with. This Part presents a fresh approach that holds=20
promising vehicles that can explain some of the paradoxes economists have=
=20
been facing for years. =09Submitted for publications as a working paper at =
the=20
Department of Economics at Georgetown University. (November 2000)
2=09A New Approach to
=09=01&Production Theory=018=09This paper introduces a fresh approach to th=
e Production Theory.
=09=09Unlike the conventional approach of relating production to Capital an=
d Labor=20
along the line suggested by Cobb Douglas, the approach this paper takes is=
=20
relating the production to utility change which in turn is related to chang=
es=20
in capital and labor effort.=20
=09=09This approach affords more generality and helps in the explanation of=
 some=20
paradoxes that the Cobb Douglas theory could not explain. =09Submitted for=
=20
publications in =01&Economic Theory=018, (October 2000)
3=09The Capital Engine Concept=09This Paper presents a fresh approach that =
explains=20
several observations in economics.=20
=09=09The concept is used to discuss some of the trends the economic growth=
 theory=20
exhibits.
=09=09It is also used to explain gains in productivity associated with tech=
nology=20
improvements.
=09=09The Capital Engine concept presented in this paper could serve as a b=
asis for=20
new growth theory.=09Submitted for publications in =01&Economic Theory=018,=
 October 2000)

    =20
A fourth paper entitled "Innovation: Why" is under preparation. In this=20
paper, we are able to substantiate  based on the concept of  the Capital=20
Engine that innovation is the most important driver for economic growth. Yo=
u=20
can see why I chose these two words in the title of the paper from my Enron=
=20
world.

I have been collaborating with Professor Oweiss on my own time and I am=20
pleased that we managed to get to this point. Professor Oweiss and I are no=
w=20
convinced that we have reached some breakthroughs that could revolutionize=
=20
the study of Economics. We also feel that we can build further on what we=
=20
reached, and even making more valuable contributions.

I am sure that you will be pleased to learn of the above, of course being a=
n=20
Economist you shall appreciate it even more.

As I reach this critical stage on our path of this research project,  I wou=
ld=20
like to seek Enron support in two areas:

I.   Patent(s) / Copy Righting:
     I feel that the contributions that are covered in the three papers are=
=20
original and may warrant patenting / copy righting.=20
     Since I am the primary author of these papers I wanted to have some=20
credit go to Enron.

II.  Grant / Sponsorship:
     I feel that my endeavors which have been purely on my own personal tim=
e=20
so far, need to be replaced by a more concerted effort now that we have=20
reached a =20
     critical mass. Towards this end, Dr. Oweiss and myself are taking step=
s=20
to get funding from the National Science Foundation for a joint research=20
project that=20
     would be carried out through the Georgetown University.
     I do not know of any particular programs within Enron that would affor=
d=20
me the opportunity to complete a project like the one we are envisaging. =
=20
     I feel that such a research program will be very valuable.  I am furth=
er=20
convinced that such program will not be only of an academic value but it wi=
ll=20
have=20
     significant impact to the business world.

 I trust that the publicity that Enron being the leading company in=20
innovation would get out of the success that I am hoping for  the proposed=
=20
research project will be many folds the amount of money Enron would=20
contribute to the proposed effort.=20

I would be delighted to send you copies of the three papers and / or make a=
=20
brief presentation on the subject.

I wish to thank you for taking the time to read the above e-mail amid your=
=20
busy schedule.=20

Regards,

Hemmat Safwat
General Manager,
Development Engineering
Enron Middle East













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