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The author argues that it is microeconomics that needs foundations, not macroeconomics. Preferences need to be built on biology, and, in particular, on neuroscience. In contrast, macroeconomics could benefit from rationalizations of aggregate economic phenomena by non-equilibrium statistical...
Persistent link: https://www.econbiz.de/10010298584
I argue that it is microeconomics that needs foundations, not macroeconomics. Preferences need to be built on biology, and, in particular, on neuroscience. In contrast, macroeconomics could benefit from rationalizations of aggregate economic phenomena by non-equilibrium statistical physics.
Persistent link: https://www.econbiz.de/10010298641
The authors propose a new method for estimating the power-law exponents of firm size variables. Their focus is on how to empirically identify a range in which a firm size variable follows a power-law distribution. On the one hand, as is well known a firm size variable follows a power-law...
Persistent link: https://www.econbiz.de/10010307564
Pervasive and ubiquitous oscillations, mapping the repetitive variation in time of a specific state, are well known as abundant phenomena in research and practice. Motivated by the success of oscillators in the modelling, analysis and control of dynamical systems, we developed a related approach...
Persistent link: https://www.econbiz.de/10014501641
Financial Reynolds number (Re) has been proven to have the capacity to predict volatility, herd behaviour and nascent bubble in any stock market (bourse) across the geographical boundaries. This study examines forty two bourses (representing same number of countries) for the evidence of the...
Persistent link: https://www.econbiz.de/10014558389
In this paper, we introduce and discuss the passage to hydrodynamic equations for kinetic models of conservative economies, in which the density of wealth depends on additional parameters, like the propensity to invest. As in kinetic theory of rarefied gases, the closure depends on the knowledge...
Persistent link: https://www.econbiz.de/10010266944
Kinetic market models have been proposed recently to account for the redistribution of wealth in simple market economies. These models allow to develop a qualitative theory, which is based on methods borrowed from the kinetic theory of rarefied gases. The aim of these notes is to present a...
Persistent link: https://www.econbiz.de/10010267232
economics and finance. The bulk of what has recently become known as 'econophysics' in broader circles draws its motivation from … scaling in finance derived from models of stochastic interactions of traders. Sec. 3 provides an overview over other … applications of statistical physics methodology in finance and attempts to evaluate the impact they have had so far on financial …
Persistent link: https://www.econbiz.de/10010273110
current of behavioral finance. However, their design is closer in spirit to models of multi-particle interaction in physics … various implementations, and its contribution to an explanation of the stylized facts in finance. …
Persistent link: https://www.econbiz.de/10010273169
current of behavioural finance. However, their design is closer in spirit to models of multi-particle interaction in physics … various implementations, and its contribution to an explanation of the stylized facts in finance. …
Persistent link: https://www.econbiz.de/10010295122