Related papers: Financial heat machine
Since its inception about two centuries ago thermodynamics has sparkled continuous interest and fundamental questions. According to the second law no heat engine can have an efficiency larger than Carnot's efficiency. The latter can be…
With the Lipkin-Meshkov-Glick (LMG) model as an illustration, we construct a thermodynamic cycle composed of two isothermal processes and two isomagnetic field processes and study the thermodynamic performance of this cycle accompanied by…
Banking system crises are complex events that in a short span of time can inflict extensive damage to banks themselves and to the external economy. The crisis literature has so far identified a number of distinct effects or channels that…
The purpose of this research article is to discover how the econophysics analysis can complement the econometrics models in application to the risk management in the central banks and financial institutions, operating within the nonlinear…
The quantum analog of Carnot cycles in few-particle systems consists of two quantum adiabatic steps and two isothermal steps. This construction is formally justified by use of a minimum work principle. It is then shown, without relying on…
We present an analytical model to study the role of expectation feedbacks and overlapping portfolios on systemic stability of financial systems. Building on [Corsi et al., 2016], we model a set of financial institutions having Value at Risk…
Earlier meta-analyses of the economic impact of climate change are updated with more data, with three new results: (1) The central estimate of the economic impact of global warming is always negative. (2) The confidence interval about the…
In economics, construction of perfect models in a way that would be comparable to the standards customary in physical sciences is generally not feasible. In particular, the observed value for an economic equilibrium may deviate…
In this work we analyze the deviations of reversible cycles (for both heat engines and refrigerators) from the corresponding Carnot cycle operating between the same extreme temperatures and deviations of irreversible cycles from its…
A heat kernel approach is proposed for the development of a general, flexible, and mathematically tractable asset pricing framework in finite time. The pricing kernel, giving rise to the price system in an incomplete market, is modelled by…
We investigate the thermodynamical properties of charged torus-like black holes and take it as the working substance to study the heat engines. In the extended phase space, by interpreting the cosmological constant as the thermodynamic…
Various quantum systems are considered as the working substance for the analysis of quantum heat cycles and quantum refrigerators. The ongoing technological challenge is how efficiently can a heat engine convert thermal energy to mechanical…
In this paper we present an econophysic model for the description of shares transactions in a capital market. For introducing the fundamentals of this model we used an analogy between the electrical field produced by a system of charges and…
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…
We briefly review statistical models for the probability distribution of money developed in the econophysics literature since the late 1990s. In these models, economic transactions are modeled as random transfers of money between the agents…
The efficiency of macroscopic heat engines is restricted by the second law of thermodynamics. They can reach at most the efficiency of a Carnot engine. In contrast, heat currents in mesoscopic heat engines show fluctuations. Thus, there is…
We review a series of experimental studies of the thermodynamics of nonequilibrium processes at the microscale. In particular, in these experiments we studied the fluctuations of the thermodynamic properties of a single optically-trapped…
We analyse non-equilibrium Carnot-like cycles built with a colloidal particle in a harmonic trap, which is immersed in a fluid that acts as a heat bath. Our analysis is carried out in the overdamped regime. The cycle comprises four…
A system responding to a stochastic driving signal can be interpreted as computing, by means of its dynamics, an implicit model of the environmental variables. The system's state retains information about past environmental fluctuations,…
All existing heat machines are dissipative open systems. Hence, they cannot operate fully coherently. We propose to replace this conventional thermodynamic paradigm by a completely different one, whereby heat machines are nonlinear coherent…