Related papers: Hierarchical financial structures with money casca…
We investigate the role of generalized symmetries in driving non-equilibrium and non-linear phenomena, specifically focusing on turbulent systems. While conventional turbulence studies have revealed inverse cascades driven by conserved…
The cascade of energy in turbulent flows, i.e., the transfer of kinetic energy from large to small flow scales or vice versa (backward cascade), is the cornerstone of most theories and models of turbulence since the 1940s. Yet,…
A simple computer simulation model of a closed market on a fixed network with free flow of goods and money is introduced. The model contains only two variables : the amount of goods and money beside the size of the system. An initially flat…
In natural settings, intermittent dynamics are ubiquitous and often arise from a coupling between external driving and spatial heterogeneities. A well-known example is the generation of transient, turbulent puffs of fluid through a pipe…
The scope of financial systemic risk research encompasses a wide range of interbank channels and effects, including asset correlation shocks, default contagion, illiquidity contagion, and asset fire sales. This paper introduces a financial…
Financial markets display scale-free behavior in many different aspects. The power-law behavior of part of the distribution of individual wealth has been recognized by Pareto as early as the nineteenth century. Heavy-tailed and scale-free…
Turbulent fluctuations exhibit universal scaling laws that are independent of large-scale statistics. It is often explained that such universality is caused by the loss of information about large-scale statistics during the cascade process.…
A multicanonical formalism is introduced to describe statistical equilibrium of complex systems exhibiting a hierarchy of time and length scales, where the hierarchical structure is described as a set of nested "internal heat reservoirs"…
In turbulence, nonlinear terms drive energy transfer from large-scale eddies into small scales through the so-called energy cascade. Turbulence often relaxes toward states that minimize energy; typically these states are considered…
It is shown that in the framework of the weak turbulence theory, the autocorrelation and cascade timescales are always of the same order of magnitude. This means that, contrary to the general belief, any model of turbulence which implies a…
This paper introduces a tractable model to study incentive-compatible homophily under both external environments--such as exogenous shocks or policy constraints--and internal micromotives based on interactive attributes. We propose a set of…
Increasingly, a huge amount of statistics have been gathered which clearly indicates that income and wealth distributions in various countries or societies follow a robust pattern, close to the Gibbs distribution of energy in an ideal gas…
This paper combines ideas from classical economics and modern finance with the general Lotka-Volterra models of Levy & Solomon to provide straightforward explanations of wealth and income distributions. Using a simple and realistic economic…
We propose a kind of reaction-diffusion equations for cell differentiation, which exhibits the Turing instability. If the diffusivity of some variables is set to be infinity, we get coupled competitive reaction-diffusion equations with a…
We describe ideal incompressible hydrodynamics on the hyperbolic plane which is an infinite surface of constant negative curvature. We derive equations of motion, general symmetries and conservation laws, and then consider turbulence with…
Turbulence is defined as an eddy-like state of fluid motion where the inertial-vortex forces of the eddies are larger than any other forces that tend to damp the eddies out. By this definition, turbulence always cascades from small scales…
A computational model for the distribution of wealth among the members of an ideal society is presented. It is determined that a realistic distribution of wealth depends upon two mechanisms: an asymmetric flux of wealth in trading…
Fully developed turbulence is a universal and scale-invariant chaotic state characterized by an energy cascade from large to small scales where the cascade is eventually arrested by dissipation. In this article, we show how to harness these…
In this paper the dependence of wealth distribution and the velocity of money on the required reserve ratio is examined based on a random transfer model of money and computer simulations. A fractional reserve banking system is introduced to…
Economy is demanding new models, able to understand and predict the evolution of markets. To this respect, Econophysics is offering models of markets as complex systems, such as the gas-like model, able to predict money distributions…