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The theory of thermal macroeconomics (TM) analyses economic phenomena within the mathematical framework of classical thermodynamics, using a set of axioms that apply to the purely macroscopic aspects of an economy [CM]. The theory shows…

General Economics · Economics 2026-03-12 Yihang Luo , Robert S. MacKay , Nick Chater

Here we present a novel approach to statistical analysis of financial time series. The approach is based on $n$-grams frequency dictionaries derived from the quantized market data. Such dictionaries are studied by evaluating their…

Statistical Finance · Quantitative Finance 2013-08-14 Igor Borovikov , Michael Sadovsky

Foreign Exchange (Forex) is the largest financial market in the world. The daily trading volume of the Forex market is much higher than that of stock and futures markets. Therefore, it is of great significance for investors to establish a…

Statistical Finance · Quantitative Finance 2021-02-10 Yiqi Zhao , Matloob Khushi

Let $x \in \R$ be given. As we know the, amount of bits needed to binary code $x$ with given accuracy ($h \in \R$) is approximately $ \m_{h}(x) \approx \log_{2}(\max {1, |\frac{x}{h}|}). $ We consider the problem where we should translate…

Information Theory · Computer Science 2012-04-03 Przemysław Spurek , Jacek Tabor

We consider mechanisms that provide traders the opportunity to exchange commodity $i$ for commodity $j$, for certain ordered pairs $ij$. Given any connected graph $G$ of opportunities, we show that there is a unique mechanism $M_{G}$ that…

Computer Science and Game Theory · Computer Science 2024-09-24 Pradeep Dubey , Siddhartha Sahi , Martin Shubik

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…

Physics and Society · Physics 2009-11-11 Ning Xi , Ning Ding , Yougui Wang

Assessing the predictive power of both data and models holds paramount significance in time-series machine learning applications. Yet, preparing time series data accurately and employing an appropriate measure for predictive power seems to…

Statistical Finance · Quantitative Finance 2023-11-22 Martin Winistörfer , Ivan Zhdankin

Monte Carlo algorithms simulate some prescribed number of samples, taking some random real time to complete the computations necessary. This work considers the converse: to impose a real-time budget on the computation, which results in the…

Computation · Statistics 2023-06-22 Lawrence M. Murray , Sumeetpal Singh , Anthony Lee

Robust inflation measures gauge inflation behavior by excluding volatile expenditure categories from headline inflation. We evaluate the forecasting performance of a wide set of such measures between 1970 and 2024, including core, median,…

General Economics · Economics 2025-03-04 Sergio Ocampo , Raphael Schoenle , Dominic A. Smith

A continuous-time consumption-investment model with constraint is considered for a small investor whose decisions are the consumption rate and the allocation of wealth to a risk-free and a risky asset with logarithmic Brownian motion…

Portfolio Management · Quantitative Finance 2022-01-06 Zuo Quan Xu , Fahuai Yi

A minimal central bank credibility, with a non-zero probability of not renegning his commitment ("quasi-commitment"), is a necessary condition for anchoring inflation expectations and stabilizing inflation dynamics. By contrast, a complete…

General Economics · Economics 2020-12-07 Jean-Bernard Chatelain , Kirsten Ralf

We consider an abstraction of computational security in password protected systems where a user draws a secret string of given length with i.i.d. characters from a finite alphabet, and an adversary would like to identify the secret string…

Information Theory · Computer Science 2017-12-27 Arman Rezaee , Ahmad Beirami , Ali Makhdoumi , Muriel Medard , Ken Duffy

We consider an auction market in which market makers fill the order book during a given time period while some other investors send market orders. We define the clearing price of the auction as the price maximizing the exchanged volume at…

Trading and Market Microstructure · Quantitative Finance 2020-06-30 Paul Jusselin , Thibaut Mastrolia , Mathieu Rosenbaum

We develop new methods to statically bound the resources needed for the execution of systems of concurrent, interactive threads. Our study is concerned with a \emph{synchronous} model of interaction based on cooperative threads whose…

Programming Languages · Computer Science 2007-06-13 Roberto Amadio , Silvano Dal Zilio

Monetary integration has both costs and benefits. Europeans have a strong aversion to exchange rate instability. From this perspective, the EMS has shown its limits and full monetary union involving a single currency appears to be a…

General Economics · Economics 2018-07-23 Chris Kirrane

This papers aims to establish the empirical relationship between income, net wealth and their joint distribution in a selected group of euro area countries. I estimate measures of dependence between income and net wealth using a…

General Economics · Economics 2023-04-28 Anna Stelzer

The aim of the present article is to offer a strictly mathematical, statistical treatment of the current account balances in EU and in the Eurozone. Based on Eurostat data, an overview of the total and annual balances is first made for…

General Finance · Quantitative Finance 2013-02-26 Dimitris Sardelis

This paper is the first attempt to formalize a new field of economics; studding the Intangibles Goods available on the Internet. We are taking advantage of the digital world's specific rules, in particular the zero marginal cost, to propose…

Economics · Quantitative Finance 2014-05-09 Laurent Fournier

In this paper, we reveal the attenuation mechanism of anchor of the commodity money from the perspective of logistics warehousing costs, and propose a novel Decayed Commodity Money (DCM) for the store of value across time and space.…

General Finance · Quantitative Finance 2016-06-23 Boliang Lin , Ruixi Lin

A central problem of Quantitative Finance is that of formulating a probabilistic model of the time evolution of asset prices allowing reliable predictions on their future volatility. As in several natural phenomena, the predictions of such…

Statistical Finance · Quantitative Finance 2012-09-25 Fulvio Baldovin , Dario Bovina , Francesco Camana , Attilio L. Stella