The statistical mechanics of financial markets by Johannes Voit

The statistical mechanics of financial markets



Download The statistical mechanics of financial markets




The statistical mechanics of financial markets Johannes Voit ebook
ISBN: 3540262857, 9783540262855
Page: 385
Format: pdf
Publisher: Springer


Econophysics, a portmanteau term coined by Boston University physicist H. Eugene Stanley in 1995, is the application of statistical mechanics to economics and finance. Click here to see reviews from buyers. Affiliations: Santa Fe Institute, Santa Fe, New Mexico, United States of America, Center for Advanced Studies in Ecology and Biodiversity, Pontificia Universidad Católica de Chile, Santiago, Chile, Statistical and Interdisciplinary Physics Group, Instituto Balseiro and Consejo Nacional de Investigaciones Científicas y Técnicas, Although approximately correct, this model fails to explain the frequent occurrence of extreme price movements, such as stock market crashes. Taking into account the long tradition in the analysis of complex systems in statistical physics, scaling laws suggest to look at financial data as the result of social processes of a large ensemble of interacting sub-units. This is the application of methods developed in statistical physics to the study of finance, markets, income distribution, and so on. McCauley puts it in the second edition of his Dynamics of Markets (2009), can only deal with “mild risk”. Its application to the study of financial markets has also been termed statistical finance referring to its roots in statistical physics. Just what is this statistical mechanics, you wonder? The Statistical Mechanics of Financial Markets (Theoretical and Mathematical Physics) Reviews. Statistical The “ Reagan-Thatcher-Friedman” world, as Joseph L. Outlines & Highlights for The Statistical Mechanics of Financial Markets by Sarah Dessen&store=book, ISBN: 9783642065781 (Cram101 Textbook Outlines).