Related papers: From Physics to Economics: An Econometric Example …
We introduce the entropic measure transform (EMT) problem for a general process and prove the existence of a unique optimal measure characterizing the solution. The density process of the optimal measure is characterized using a…
The metriplectic formalism is useful for describing complete dynamical systems which conserve energy and produce entropy. This creates challenges for model reduction, as the elimination of high-frequency information will generally not…
The classical problem of moments is addressed by the maximum entropy approach for one-dimensional discrete distributions. The numerical technique of adaptive support approximation is proposed to reconstruct the distributions in the region…
The formalism of statistical mechanics can be generalized by starting from more general measures of information than the Shannon entropy and maximizing those subject to suitable constraints. We discuss some of the most important examples of…
It has been shown that one can accommodate data (Bayes) and constraints (MaxEnt) in one method, the method of Maximum (relative) Entropy (ME) (Giffin 2007). In this paper we show a complex agent based example of inference with two different…
Algebraic statistics is a recently evolving field, where one would treat statistical models as algebraic objects and thereby use tools from computational commutative algebra and algebraic geometry in the analysis and computation of…
In this article we describe the applications of the relative entropy framework. In particular uniqueness of an entropy solution is proven for a scalar conservation law, using the notion of measure-valued entropy solutions. Further we survey…
We develop a framework to extend resource measures from one domain to a larger one. We find that all extensions of resource measures are bounded between two quantities that we call the minimal and maximal extensions. We discuss various…
This study presents a novel approach to modelling economic agents as analogous to spin states in physics, particularly the Ising model. By associating economic activity with spin orientations (up for inactivity, down for activity), the…
Entropy in thermodynamics is an extensive quantity, whereas standard methods in statistical mechanics give rise to a non-extensive expression for the entropy. This discrepancy is often seen as a sign that basic formulas of statistical…
A hypothesis proposed in the paper (Entropy 2017, 19, 345) on the deductive formulation of a physical theory based on explicitly- and universally-introduced basic concepts is further developed. An entropic measure of time with a number of…
In the last years new interdisciplinary approaches to economics and social science have been developed. A Thermodynamic approach to socio-economics has brought to a new interdisciplinary scientific field called econophysics. Why…
The method of maximum entropy has been very successful but there are cases where it has either failed or led to paradoxes that have cast doubt on its general legitimacy. My more optimistic assessment is that such failures and paradoxes…
We report an investigation of data analysis methods derived from other disciplines, which we applied to physics software systems. They concern the analysis of inequality, trend analysis and the analysis of diversity. The analysis of…
We describe a novel method to obtain thermodynamic properties of quantum systems using Baysian Inference -- Maximum Entropy techniques. The method is applicable to energy values sampled at a discrete set of temperatures from Quantum Monte…
In this paper, we test predictions of a new theory of macroeconomics, called "thermal macroeconomics." The theory aims to apply the mathematical structure of classical thermodynamics, including analogues of temperature and entropy, to…
Probability distributions of money, income, and energy consumption per capita are studied for ensembles of economic agents. The principle of entropy maximization for partitioning of a limited resource gives exponential distributions for the…
We investigate cosmological solutions for the modified gravity theory obtained from quantum relative entropy between the metric of spacetime and the metric induced by the geometry and matter fields. The vacuum equations admit inflationary…
The maximum entropy principle (MEP) is a method for obtaining the most likely distribution functions of observables from statistical systems, by maximizing entropy under constraints. The MEP has found hundreds of applications in ergodic and…
This is a review about financial dependencies which merges efforts in econophysics and financial economics during the last few years. We focus on the most relevant contributions to the analysis of asset markets' dependencies, especially…