Questions tagged [econo-physics]
The use of methods from the physical sciences to aid in the study of economic and financial systems. Note that econo-physics questions are only allowed if they are mainly about physics.
15 questions
-1
votes
1
answer
110
views
Is there sufficient "content" in the field of econophysics to write a substantial undergraduate thesis/project on? [closed]
Okay, maybe the title is somewhat misleading. My university calls this a BSc Project, but it is limited to between 4000 and 6000 words, so it isn't particularly long. Anyhow, one of the projects ...
- 97
4
votes
1
answer
141
views
On the Fokker-Planck equation: deriving the transition PDF for small times
I report below (part of) page 73 of the book The Fokker-Planck Equation, by H. Risken
We now derive an expression for the transition probability density for small $\tau$
\begin{equation}\tag{1}
p(x,t+...
- 1,664
0
votes
0
answers
69
views
Simplification of a path integral expression
I am given the following identities
$$
Z[J,t_1,t_2]=\int D W e^{\int_{t_1}^{t_2}dtJ(t)W(t)}e^{S}=e^{\frac{1}{2}\int_{t_1}^{t_2}dtJ(t)^2}
$$
$$
\int_t^Tdx\alpha(t,x)=\frac{1}{2}\left[\int_t^Tdx\sigma(t,...
- 163
0
votes
1
answer
1k
views
Is it possible to use fluid dynamics to trade in the financial market?
I read somewhere that there is an investment fund in the USA which in its trading decisions uses physical laws of hydrodynamics. I asked my physicist friend, on the account of what is really in ...
- 103
1
vote
1
answer
51
views
Boltzmann distribution for non-energy models
My question is rather general and it regards the possibility to associate the Boltzmann probability distribution to some energy model.
What are the general assumptions that an Energy-based model needs ...
- 99
1
vote
0
answers
186
views
Similarity of Equations used in Physics and Economics [closed]
I just read that there was a machine to simulate economic processes using the flow of water (https://en.wikipedia.org/wiki/MONIAC) since some equations in economics are similar to the equations in ...
0
votes
1
answer
84
views
The thermodynamics of Malthusian economics [closed]
This question sits at the crossroad between economics and physics.
Given that
The Earth receives a finite amount of light from the sun every day
It can dissipate a finite amount of heat and reflect ...
- 1
0
votes
0
answers
31
views
Advanced wind electricity generation
Well, when it comes to electricity generation it is important to design units to be scalable enough.
With wind turbines becoming popular nowadays it is very important.
As you know, currently wind ...
- 21
1
vote
3
answers
65
views
Simple equation for repulsion force on a bounded interval
I've been reading some literature on opinion dynamics models that aim to describe how agents' opinions change after interacting with each other. A classical model (from this paper) for describing how ...
- 121
0
votes
1
answer
47
views
Analytical methods for complex systems comprising of self-interested agents
I'm interested in mathematically describing complex systems that are composed of agents that have self-interest. Recently, I've been thinking along the lines that the macro-structure that we see in ...
- 2,271
11
votes
1
answer
1k
views
Where can I learn about connections between economics and physics?
I understand that there are a lot of concepts in economics motivated by physics so I was wondering if anyone would be able to recommend me some sources to learn about these things. Ideally, a textbook ...
5
votes
0
answers
136
views
Hamiltonian System Outside Physics [closed]
What are good examples of Hamiltonian systems outside physics? I heard there are financial systems that can be described by a Lagrangian, and was interested to see some examples
- 51
1
vote
0
answers
110
views
Association of financial phenomena/indications with the conservation laws of Black Scholes equation
For a while I've been doing research on methods of obtaining conservation laws via the symmetries of differential equations (DEs). I'm presently doing research on identifying financial indicators/...
- 111
11
votes
1
answer
1k
views
Relationship between the Black-Scholes model and path integrals
This question was inspired by some interesting comments by Rod Vance on this answer.
Could you (Rod), or someone else, expand on these comments and give a brief summary of the connection between the ...
- 16.5k
26
votes
1
answer
6k
views
The concepts of Path Integral in Quantitative Finance [closed]
I realize that path integral techniques can be applied to quantitative finance such as option value calculation. But I don't quite understand how this is done.
Is it possible to explain this to me ...
- 2,586