Related papers: Financial heat machine
The climate system is a forced, dissipative, nonlinear, complex and heterogeneous system that is out of thermodynamic equilibrium. The system exhibits natural variability on many scales of motion, in time as well as space, and it is subject…
This mathematical essay brings together ideas from Economics, Geobiodynamics and Thermodynamics. Its purpose is to obtain real models of complex evolutionary systems. More specifically, the essay defines Roegenian Economy and links…
We consider demand-side economy. Using Caratheodory's approach, we define empirical existence of equation of state (EoS) and coordinates. We found new insights of thermodynamics EoS, the {\it effect structure}. Rules are proposed as…
The quantum engine cycle serves as an analogous representation of the macroscopic nature of heat engines and the quantum regime of thermal devices composed of a single element. In this work, we follow the formalism of a quantum engine…
In a quantum Stirling heat engine, the heat exchanged with two thermal baths is partly utilized for performing work by redistributing the energy levels of the working substance. We analyze the thermodynamics of a quantum Stirling engine…
An agent-based model with interacting low frequency liquidity takers inter-mediated by high-frequency liquidity providers acting collectively as market makers can be used to provide realistic simulated price impact curves. This is possible…
Heat capacities of model systems with finite numbers of effective degrees of freedom are evaluated using canonical and microcanonical thermodynamics. Discrepancies between both approaches, which are observed even in the infinite-size limit,…
In this paper an econophysics model for the currency exchange operations with commission is proposed. With this purpose some analogies and similarities of the processes that take place in the frame of the electrochemical system made from…
This paper develops a new model of business cycles. The model is economical in that it is solved with an aggregate demand-aggregate supply diagram, and the effects of shocks and policies are obtained by comparative statics. The model builds…
Finite-time thermodynamics provides the means to revisit ideal thermodynamic equilibrium processes in the light of reality and investigate the energetic "price of haste", i.e. the consequences of carrying out a process in finite time, when…
The stability of money value is an important requisite for a functioning economy, yet it critically depends on the actions of participants in the market themselves. Here we model the value of money as a dynamical variable that results from…
We study the stochastic energetic exchanges in quantum heat engines. Due to microreversibility, these obey a fluctuation relation, called the heat engine fluctuation relation, which implies the Carnot bound: no machine can have an…
Agent-based models provide a constructive approach to studying emergent dynamics in life-like systems composed of interacting, adaptive agents. Financial markets serve as a canonical example of such systems, where collective price dynamics…
Modern approaches to stock pricing in quantitative finance are typically founded on the 'Black-Scholes model' and the underlying 'random walk hypothesis'. Empirical data indicate that this hypothesis works well in stable situations but, in…
We analyze complexity of financial (and general economic) processes by comparing classical and quantum-like models for randomness. Our analysis implies that it might be that a quantum-like probabilistic description is more natural for…
Inflationary models usually assume the existence of scalar fields or other exotic gravitational sources. We investigate an alternative approach in which the entire Universe is considered as a thermodynamic system described by…
Despite its simplicity, it seems to my best of knowledge that the possibly simplest approach towards deriving equations governing irreversible thermodynamics from gas-kinetic considerations within the framework of classical mechanics has…
Business cycles (a periodic change of e.g. GDP over five to ten years) exist, but a proper explanation for it is still lacking. Here we extend the well-known NAIRU (non-accelerating inflation rate of unemployment) model, resulting in a set…
In the General Theory, Keynes remarked that the economy's state depends on expectations, and that these expectations can be subject to sudden swings. In this work, we develop a multiple equilibria behavioural business cycle model that can…
Thermodynamics could be seen as an expression of physics at a high epistemic level. As such, its potential as an inductive bias to help machine learning procedures attain accurate and credible predictions has been recently realized in many…