Related papers: Economics need a scientific revolution
In a series of papers, Ole Peters and his collaborators claim that the 'conceptual basis of mainstream economic theory' is 'flawed' and that the approach they call 'ergodicity economics' gives 'reason to hope for a future economic science…
Datacentric enthusiasm is growing strong across a variety of domains. Whilst data science asks unquestionably exciting scientific questions, we argue that its contributions should not be extrapolated from the scientific context in which…
Current concerns over reforming engineering education have focused attention on helping students develop skills and an adaptive expertise. Phenomenological guidelines for instruction along these lines can be understood as arising out of an…
Bankruptcy prediction is an important research area that heavily relies on data science. It aims to help investors, managers, and regulators better understand the operational status of corporations and predict potential financial risks in…
Estimating and controlling large risks has become one of the main concern of financial institutions. This requires the development of adequate statistical models and theoretical tools (which go beyond the traditionnal theories based on…
The aim of this article is to present elements and discuss the potential of a research program at the intersection between mathematics and heterodox economics, which we call Criticial Mathematical Economics (CME). We propose to focus on the…
Abrupt shifts in ecosystems, brains, markets, and climate are often diagnosed as signs of approaching a tipping point, i.e. a critical bifurcation where stability is lost. Here we reveal a broader and more deceptive mechanism:…
The term of big data was used since 1990s, but it became very popular around 2012. A recent definition of this term says that big data are information assets characterized by high volume, velocity, variety and veracity that need special…
Some attack scientific rationality, others defend it, but both miss the point. What both parties take to be scientific rationality is actually a species of irrationality masquerading as scientific rationality. The current orthodox…
Machine learning and deep learning techniques are contributing much to the advancement of science. Their powerful predictive capabilities appear in numerous disciplines, including chaotic dynamics, but they miss understanding. The main…
This essay suggests that a proper assessment of the presently unfolding financial crisis, and its cure, requires going back at least to the late 1990s, accounting for the cumulative effect of the ITC, real-estate and financial derivative…
How can econophysics contribute to economics? Since the relation between basic principles of physics and economics is not established, there is no reason why physical theories should be of any value for economic theory. While economic…
Organizations across all sectors are increasingly undergoing deep transformation and restructuring towards data-driven operations. The central role of data highlights the need for reliable and clean data. Unreliable, erroneous, and…
The most important problems for society are describable only in vague terms, dependent on subjective positions, and missing highly relevant data. This thesis is intended to revive and further develop the view that giving non-trivial,…
Advances in science are being sought in newly available opportunities to collect massive quantities of data about complex systems. While key advances are being made in detailed mapping of systems, how to relate this data to solving many of…
By 1930, at a time when the new physics based on relativity and quantum theory had reached a state of consolidation, problems of a foundational kind began to abound. Physicists began to speak of a new "crisis" and envisage a forthcoming…
Many dynamical systems operate in a fluctuating environment. However, even in low-dimensional setups, transitions and bifurcations have not yet been fully understood. In this Letter we focus on crises, a sudden flooding of the phase space…
The financial crisis of 2008, which started with an initially well-defined epicenter focused on mortgage backed securities (MBS), has been cascading into a global economic recession, whose increasing severity and uncertain duration has led…
In the pursuit of ever increasing efficiency and growth, our economies have evolved to remarkable degrees of complexity, with nested production processes feeding each other in order to create products of greater sophistication from less…
Predicting panic is of critical importance in many areas of human and animal behavior, notably in the context of economics. The recent financial crisis is a case in point. Panic may be due to a specific external threat, or self-generated…