Using the wavelet-Galerkin method for solving partial integro-differential equations, we derive an implement computationally efficient formula for pricing European options on assets driven by multivariate jump-diffusions. This pricing formula is then used to solve the inverse problem of...

The latest financial crisis shows that the neoclassical theory has proven obsolete in its task of explaining the behavior of markets, which is why we propose the application of new theories in particle chaos theory and science of fractals to model finance. In this paper, we present a review of...

We study the environmental and economic effects of public abatement in the presence of multiple stable steady-state ecological equilibria. Under shallow-lake dynamics (SLD), the isocline for the stock of pollution features two stable branches, a good and a bad one. Assuming that the ecology is...

This paper offers empirical evidence on the power of Sornette et al's [2001] model of bubbles and crashes regarding the German stock market between 1960 and 2009. We identify relevant time periods and describe them with the function given by Sornette et al's model. Our results show some evidence...

Outcomes of the shallow lake interest conflict are presented in a number of different contexts: quasi-static and dynamic social planning, and quasi-static one-shot and repeated non-cooperative play. As the underlying dynamics are non-convex, the analysis uses geometrical-numerical methods: the...

In this paper, the capacity of a particular type of a formal theoretical model to generate‐compute non‐trivial economic dynamics is studied. The model chosen is the flexible accelerator and the classification of the attractors is made in terms of Wolfram four classes. The model at the...