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In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…

General Finance · Quantitative Finance 2015-03-20 Robert Kitt

Macroeconomic fluctuations and the narratives that shape them form a mutually reinforcing cycle: public discourse can spur behavioural changes leading to economic shifts, which then result in changes in the stories that propagate. We show…

Computation and Language · Computer Science 2025-02-21 Felix Drinkall , Stefan Zohren , Michael McMahon , Janet B. Pierrehumbert

Most of the modeling approaches used to understand organizational worker mobility are highly stylized, using idealizations such as structureless organizations, indistinguishable workers, and a lack of social bonding of the workers. In this…

Computational Engineering, Finance, and Science · Computer Science 2025-08-12 Bryan Adams , Valentín Vergara Hidd , Daniel Stimpson , Miesha Purcell , Eduardo López

We extend the exploration regarding dynamical approach of macroeconomic variables by tackling systematically expenditure using Statistical Physics models (for the first time to the best of our knowledge). Also, using polynomial distribution…

General Finance · Quantitative Finance 2016-03-29 Elvis Oltean , Fedor Kusmartsev

The major perspective of this paper is to provide more evidence into the empirical determinants of capital structure adjustment in different macroeconomics states by focusing and discussing the relative importance of firm-specific and…

Economics · Quantitative Finance 2018-01-23 Andreas Kaloudis , Dimitrios Tsolis

We consider a compartmental model to study the evolution of the number of regular customers and referral customers in some corporation. Transitions between compartments are modeled by parameters depending on the social network and the…

Dynamical Systems · Mathematics 2015-03-11 César M. Silva , Silvério Rosa , Helena Alves , Pedro G. Carvalho

Amidst growing uncertainty and frequent restructurings, the impacts of employee exits are becoming one of the central concerns for organizations. Using rich communication data from a large holding company, we examine the effects of employee…

Social and Information Networks · Computer Science 2024-02-27 David Gamba , Yulin Yu , Yuan Yuan , Grant Schoenebeck , Daniel M. Romero

A new model of an evolution of ranks of employees due to staff turnover in an organization is designed. If the rank is determined only by the performance, the rank shift of incumbents due to the turnover is proportional to the initial rank:…

Physics and Society · Physics 2023-01-20 Maciej Wołoszyn , Krzysztof Kułakowski

The convergence rate is a crucial issue in opinion dynamics, which characterizes how quickly opinions reach a consensus and tells when the collective behavior can be formed. However, the key factors that determine the convergence rate of…

Optimization and Control · Mathematics 2024-09-17 Lingling Yao , Aming Li

The objective of this work is twofold: to expand the depression models proposed by Tobin and analyse a supply shock, such as the Covid-19 pandemic, in this Keynesian conceptual environment. The expansion allows us to propose the evolution…

General Economics · Economics 2020-07-20 Ignacio Escanuela Romana

A microscopic dynamic model is here constructed and analyzed, describing the evolution of the income distribution in the presence of taxation and redistribution in a society in which also tax evasion and auditing processes occur. The focus…

General Finance · Quantitative Finance 2017-05-03 M. L. Bertotti , G. Modanese

An axiomatic approach to macroeconomics based on the mathematical structure of thermodynamics is presented. It deduces relations between aggregate properties of an economy, concerning quantities and flows of goods and money, prices and the…

General Economics · Economics 2025-06-18 N. J. Chater , R. S. MacKay

One approach to the analysis of stochastic fluctuations in market prices is to model characteristics of investor behaviour and the complex interactions between market participants, with the aim of extracting consequences in the aggregate.…

Probability · Mathematics 2008-12-02 Erhan Bayraktar , Ulrich Horst , Ronnie Sircar

The value of stocks, indices and other assets, are examples of stochastic processes with unpredictable dynamics. In this paper, we discuss asymmetries in short term price movements that can not be associated with a long term positive trend.…

Data Analysis, Statistics and Probability · Physics 2009-11-13 Ingve Simonsen , Peter Toke Heden Ahlgren , Mogens H. Jensen , Raul Donangelo , Kim Sneppen

Economic shocks due to Covid-19 were exceptional in their severity, suddenness and heterogeneity across industries. To study the upstream and downstream propagation of these industry-specific demand and supply shocks, we build a dynamic…

General Economics · Economics 2021-02-22 Anton Pichler , Marco Pangallo , R. Maria del Rio-Chanona , François Lafond , J. Doyne Farmer

I sketch a program for a microeconomic theory of the main component of the business cycle as a recurring disequilibrium, driven by incompleteness of the financial market and by information asymmetries between borrowers and lenders. This…

General Finance · Quantitative Finance 2015-07-02 Alejandro Jenkins

This paper investigates the assumption of homogeneous effects of federal tax changes across the U.S. states and identifies where and why that assumption may not be valid. More specifically, what determines the transmission mechanism of tax…

General Economics · Economics 2021-07-30 Masud Alam

In this paper we apply the techniques of symbolic dynamics to the analysis of a labor market which shows large volatility in employment flows. In a recent paper, Bhattacharya and Bunzel \cite{BB} have found that the discrete time version of…

Chaotic Dynamics · Physics 2007-05-23 Diana A. Mendes , Vivaldo M. Mendes , J. Sousa Ramos

We compare observed corporate cumulative default probabilities to those calculated using a stochastic model based on an extension of the work of Black and Cox and find that corporations default as if via diffusive dynamics. The model, based…

Soft Condensed Matter · Physics 2008-12-02 Ting Lei , Raymond J. Hawkins

We study the mean escape time in a market model with stochastic volatility. The process followed by the volatility is the Cox Ingersoll and Ross process which is widely used to model stock price fluctuations. The market model can be…

Statistical Mechanics · Physics 2009-11-11 Giovanni Bonanno , Davide Valenti , Bernardo Spagnolo
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