Related papers: Financial heat machine
We argue that the present crisis and stalling economy continuing since 2007 are rooted in the delusionary belief in policies based on a "perpetual money machine" type of thinking. We document strong evidence that, since the early 1980s,…
The heat engine, a machine that extracts useful work from thermal sources, is one of the basic theoretical constructs and fundamental applications of classical thermodynamics. The classical description of a heat engine does not include…
A microscopic model of financial markets is considered, consisting of many interacting agents (spins) with global coupling and discrete-time thermal bath dynamics, similar to random Ising systems. The interactions between agents change…
Recently, large-scale cascading failures in complex systems have garnered substantial attention. Such extreme events have been treated as an integral part of the self-organized criticality (SOC). Recent empirical work has suggested that…
We describe the innovations in finances, introduced over the recent decades, and analyze most of the business and regulatory challenges, faced by the financial industry, because of the present disruptive changes in the global capital…
Prediction problems in finance go beyond estimating the unknown parameters of a model (e.g. of expected returns). This is because such a model would have to include parameters governing the market participants' propensity to change their…
The paper present one of attempts to apply the thermodynamics laws to economics. Introducing common thermodynamic parameters and considering world economics as a one macrosystem, authors demonstrate the possible consequences of entropy…
It is believed that thermodynamic laws are associated with random processes occurring in the system and, therefore, deterministic mechanical systems cannot be described within the framework of the thermodynamic approach. In this paper, we…
Stock markets are complex systems exhibiting collective phenomena and particular features such as synchronization, fluctuations distributed as power-laws, non-random structures and similarity to neural networks. Such specific properties…
Thermodynamics places a limit on the efficiency of heat engines, but not on their output power or on how the power and efficiency change with the engine's cycle time. In this manuscript, we develop a geometrical description of the power and…
The aim of this paper is to reemphasize the money theory of exchange which is centered on the function of exchange medium of money, and make a contribution towards linearization of the quantity equation of exchange. A dynamical quantity…
The principal aim of this work is the evidence on empirical way that catastrophic bifurcation breakdowns or transitions, proceeded by flickering phenomenon, are present on notoriously significant and unpredictable financial markets.…
The microscopic quantum field theory origins of warm inflation dynamics are reviewed. The warm inflation scenario is first described along with its results, predictions and comparison with the standard cold inflation scenario. The basics of…
This work is devoted to the thermodynamics description of a phantom scenario proposed previously by the authors. The presence of negative chemical potential is unavoidable if we allege for a well defined thermodynamics framework since the…
Classical thermodynamics is unrivalled in its range of applications and relevance to everyday life. It enables a description of complex systems, made up of microscopic particles, in terms of a small number of macroscopic quantities, such as…
Heat engines constitute the major building blocks of modern technologies. However, conventional heat engines with higher power yield lesser efficiency and vice versa and respect various power-efficiency trade-off relations. This is also…
Trust lies at the crux of most economic transactions, with credit markets being a notable example. Drawing on insights from the literature on coordination games and network growth, we develop a simple model to clarify how trust breaks down…
On the assumption that experimentally validated tabulated thermodynamic properties of saturated fluids published by the National Institute of Standards and Technology are accurate, a theoretical thermodynamic cycle can be demonstrated that…
We present a simple kinematic model of a non-equilibrium steady state device, which can operate either as a heat engine or as a refrigerator. The model is composed of two or more scattering channels where the motion is fully described by…
Engines are open systems that can generate work cyclically, at the expense of an external disequilibrium. They are ubiquitous in nature and technology, but the course of mathematical physics over the last 300 years has tended to make their…