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The aim of this work is to implement a statistical mechanics theory of social interaction, generalizing econometric discrete choice models. A class of simple mean field discrete models is introduced and discussed both from the theoretical…

Physics and Society · Physics 2008-11-20 Ignacio Gallo , Adriano Barra , Pierluigi Contucci

Through this paper, an attempt has been made to quantify the underlying relationships between the leading macroeconomic indicators. More clearly, an effort has been made in this paper to assess the cointegrating relationships and examine…

General Economics · Economics 2019-07-11 Saannidhya Rawat

Analytical description of propagation phenomena on random networks has flourished in recent years, yet more complex systems have mainly been studied through numerical means. In this paper, a mean-field description is used to coherently…

Statistical Mechanics · Physics 2010-10-08 Laurent Hébert-Dufresne , Pierre-André Noël , Vincent Marceau , Antoine Allard , Louis J. Dubé

In this work we introduce a model of default contagion that combines the approaches of Eisenberg-Noe interbank networks and dynamic mean field interactions. The proposed contagion mechanism provides an endogenous rule for early defaults in…

Mathematical Finance · Quantitative Finance 2019-12-19 Zachary Feinstein , Andreas Sojmark

We describe, at the microscopic level, the dynamics of N interacting components where the probability is very small when N is large that a given component interact more than once, directly or indirectly, up to time t, with any other…

Computational Finance · Quantitative Finance 2012-02-24 Alain Bélanger , Gaston Giroux

We define data-driven macroeconomic regimes by clustering the relative performance in time of indices belonging to different asset classes. We then investigate lead-lag relationships within the regimes identified. Our study unravels market…

Mathematical Finance · Quantitative Finance 2022-09-05 Deborah Miori , Mihai Cucuringu

Many sociological networks, as well as biological and technological ones, can be represented in terms of complex networks with a heterogeneous connectivity pattern. Dynamical processes taking place on top of them can be very much influenced…

Statistical Mechanics · Physics 2014-10-20 Jean-Daniel Bancal , Romualdo Pastor-Satorras

Empirically derived continuum models of collective behavior among large populations of dynamic agents are a subject of intense study in several fields, including biology, engineering and finance. We formulate and study a mean-field game…

Adaptation and Self-Organizing Systems · Physics 2018-06-22 Piyush Grover , Kaivalya Bakshi , Evangelos A. Theodorou

We develop a statistical theory of the mean field. It is based on the proposition that the mean field can be obtained as an energy average. Moreover, it is assumed that the matrix elements of the residual interaction are random with the…

Nuclear Theory · Physics 2007-05-23 R. Caracciolo , A. De Pace , H. Feshbach , A. Molinari

A statistical generalization is made of microeconomics in the spirit of going from classical to statistical mechanics. The price and quantity of every commodity1 traded in the market, at each instant of time, is considered to be an…

General Finance · Quantitative Finance 2012-12-03 Belal E. Baaquie

In this paper we extend the series of our studies on the properties of an interacting particle model for market microstructure. In our earlier work we defined a Markov process on the majority opinion of the agents, obtained the transition…

Probability · Mathematics 2008-12-02 Ted Theodosopoulos , Ming Yuen

Economic interactions often occur in networks where heterogeneous agents (such as workers or firms) sort and produce. However, most existing estimation approaches either require the network to be dense, which is at odds with many empirical…

Econometrics · Economics 2023-07-24 Stéphane Bonhomme , Kevin Dano

The current economic crisis has provoked an active response from the interdisciplinary scientific community. As a result many papers suggesting what can be improved in understanding of the complex socio-economics systems were published.…

Physics and Society · Physics 2018-10-17 Aleksejus Kononovicius , Valentas Daniunas

The manner epidemics occurs in a social network depends on various elements, with two of the most influential being the relationships among individuals in the population and the mechanism of transmission. In this paper, we assume that the…

Dynamical Systems · Mathematics 2024-05-09 Francisco J. Muñoz , Luca Meacci , Juan Carlos Nuño , Mario Primicerio

This essay provides a critical overview of the mathematical kinetic theory of active particles, which is used to model and study collective systems consisting of interacting living entities, such as those involved in behavior and evolution.…

Physics and Society · Physics 2025-10-17 Marina Dolfin , Leone Leonida

Processes of mass communications in complicated social or sociobiological systems such as marketing, economics, politics, animal populations, etc. as a subject for the special scientific discipline - "mediaphysics" - are considered in its…

Physics and Society · Physics 2007-05-23 Dmitri V. Kuznetsov , Igor Mandel

The global economy is one of today's major challenges, with increasing relevance in recent decades. A frequent observation by policy makers is the lack of tools that help at least to understand, if not predict, economic crises. Currently,…

General Finance · Quantitative Finance 2023-05-16 Martin Jaraiz

We consider social systems in which agents are not only characterized by their states but also have the freedom to choose their interaction partners to maximize their utility. We map such systems onto an Ising model in which spins are…

Statistical Mechanics · Physics 2008-09-26 Christoly Biely , Rudolf Hanel , Stefan Thurner

We suggest a model that describes a mutual dynamic of tectonic plates. The dynamic is a sort of stick-slip one which is modeled by a Markov random process. The process defines a microlevel of the dynamic. A macrolevel is obtained by a…

Probability · Mathematics 2014-09-11 E. Pechersky , A. Pirogov , G. Sadowski , A. Yambartsev

Ergodicity, this is to say, dynamics whose time averages coincide with ensemble averages, naturally leads to Boltzmann-Gibbs (BG) statistical mechanics, hence to standard thermodynamics. This formalism has been at the basis of an enormous…

Statistical Mechanics · Physics 2009-11-10 Constantino Tsallis , Celia Anteneodo , Lisa Borland , Roberto Osorio