Related papers: Financial heat machine
In traditional thermodynamics the Carnot cycle yields the ideal performance bound of heat engines and refrigerators. We propose and analyze a minimal model of a heat machine that can play a similar role in quantum regimes. The minimal model…
Following the thermodynamic formulation of multifractal measure that was shown to be capable of detecting large fluctuations at an early stage, here we propose a new index which permits us to distinguish events like financial crisis in real…
Passivity is a fundamental concept in thermodynamics that demands a quantum system's energy cannot be lowered by any reversible, unitary process acting on the system. In the limit of many such systems, passivity leads in turn to the concept…
The document provides an overview of financial climate risks. It delves into how climate change impacts the global financial system, distinguishing between physical risks (such as extreme weather events) and transition risks (stemming from…
This paper outlines a critical gap in the assessment methodology used to estimate the macroeconomic costs and benefits of climate policy. It shows that the vast majority of models used for assessing climate policy use assumptions about the…
The paper discusses various practical consequences of treating economics and finance as an inherently dynamic and chaotic system. On the theoretical side this looks at the general applicability of the market-making pricing approach to…
Recurrent boom-and-bust cycles are a salient feature of economic and financial history. Cycles found in the data are stochastic, often highly persistent, and span substantial fractions of the sample size. We refer to such cycles as "long".…
We discussed the criterion for usefully comparing an irreversible cycle with a reversible one, and show that the lost work cannot be determined by the usual cycle diagrams, contrary to what has been found in the literature. To better…
Is the present economic and financial crisis similar to some previous one? It would be so nice to prove that universality laws exist for predicting such rare events under a minimum set of realistic hypotheses. First, I briefly recall…
A financial market is a system resulting from the complex interaction between participants in a closed economy. We propose a minimal microscopic model of the financial market economy based on the real economy's symmetry constraint and…
After a brief historical perspective, we introduce the key notions of work and heat for quantum systems, to then apply them to quantum engines operating on quantum Otto and Carnot cycles. The irreversible and dissipative character of the…
We present a model of financial markets originally proposed for a turbulent flow, as a dynamic basis of its intermittent behavior. Time evolution of the price change is assumed to be described by Brownian motion in a power-law potential,…
Financial crises are known as crashes that result in a sudden loss of value of financial assets in large part and they continue to occur from time to time surprisingly. In order to discover features of the financial network, the pairwise…
Combustion reaction kinetics models are used for the description of a special class of bursty Financial Time Series. The small number of parameters they depend upon enable financial analysts to predict the time as well as the magnitude of…
An heuristic model of the society, as an assembly of weakly interacting individuals, is discussed. The model allows to connect macroscopic phenomena with features of relations between individuals. Addressing to the problem of inequality, a…
A heat engine operating on the basis of the Carnot cycle is considered, where the mechanical work performed is dissipated within the engine at the temperature of the warmer isotherm and the resulting heat is added to the engine together…
We investigate fluctuations of output work for a class of Stirling heat engines with working fluid composed of interacting units and compare these fluctuations to an average work output. In particular, we focus on engine performance close…
This paper presents a conceptual model describing the medium and long-term co-evolution of natural and socio-economic subsystems of Earth. An economy is viewed as an out-of-equilibrium dissipative structure that can only be maintained with…
Steady-state quantum thermal machines are typically characterized by a continuous flow of heat between different reservoirs. However, at the level of discrete stochastic realizations, heat flow is unraveled as a series of abrupt quantum…
A cyclic thermodynamic heat engine runs most efficiently if it is reversible. Carnot constructed such a reversible heat engine by combining adiabatic and isothermal processes for a system containing an ideal gas. Here, we present an example…