The representation of the economic system, from a complexity perspective, focuses on interactions among heterogeneous agents in conditions of uncertainty. Heterogeneity entails asymmetric reactions to shocks and, through interaction mechanisms and feedback loops at micro, macro and meso level,...

We develop a theoretical framework for the stochastic thermodynamics of reactive systems. We show that the transition probabilities per unit time of reactive events must satisfy specific constraints, in order for stochastic approaches to lead to physically meaningful results in the macroscopic...

We unify the gap, difference and dynamic versions of Okun’s law using the theory of anelasticity. This theory provides a straightforward and parsimonious approach to macroeconomic model construction that we illustrate by treating the time-dependence of Okun’s law generated by labor...

A purely algebraic solution is suggested to one-dimensional death-birth master equations. The method came from supersymmetric quantum mechanics and exploits some hidden symmetries of the master equation. In some cases the proposed approach is more effective than the traditional ones, which is...

We consider an exactly soluble model of a set of coupled harmonic oscillators, which was presented in a previous work. We show numerical results for the time evolution of the main dynamical quantities and compare them with analytical results.

A Mori-type equation for the lattice concentration of an interacting lattice gas is constructed on the basis of the master equation in the framework of the nonequilibrium statistical ensemble method due to Zubarev. The general expression for the diffusion coefficient, which takes into account...

A master equation approach to the numerical solution of option pricing models is developed. The basic idea of the approach is to consider the Black–Scholes equation as the macroscopic equation of an underlying mesoscopic stochastic option price variable. The dynamics of the latter is...

In this paper we analyze the double Caldeira–Leggett model: the path integral approach to two interacting dissipative harmonic oscillators. Assuming a general form of the interaction between the oscillators, we consider two different situations: (i) when each oscillator is coupled to its own...

Following Aoki’s statistical mechanics methodology [Masanao Aoki, New Approaches to Macroeconomic Modeling, Cambridge University Press, 1996; Masanao Aoki, Modeling Aggregate Behaviour and Fluctuations in Economics, Cambridge University Press, 2002; Masanao Aoki, and Hiroshi Yoshikawa, Reconstructing...

In this paper, we consider the problem of mean first-passage time (MFPT) in quantum mechanics; the MFPT is the average time of the transition from a given initial state, passing through some intermediate states, to a given final state for the first time. We apply the method developed in...