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We conduct a market experiment with human agents in order to explore the structure of transaction networks and to study the dynamics of wealth accumulation. The experiment is carried out on our platform for 97 days with 2,095 effective…

Physics and Society · Physics 2010-01-22 Jie-Jun Tseng , Sai-Ping Li , Sun-Chong Wang

We study risk-sharing economies where heterogenous agents trade subject to quadratic transaction costs. The corresponding equilibrium asset prices and trading strategies are characterised by a system of nonlinear, fully-coupled…

Portfolio Management · Quantitative Finance 2020-10-01 Martin Herdegen , Johannes Muhle-Karbe , Dylan Possamaï

We apply an asymmetric version of Kirman's herding model to volatile financial markets. In the relation between returns and agent concentration we use the square root law proposed by Zhang. This can be derived by extending the idea of a…

Physics and Society · Physics 2009-11-11 Friedrich Wagner

We introduce a stochastic model to explain a double power-law distribution which exhibits two different Paretian behaviors in the upper and the lower tail and widely exists in social and economic systems. The model incorporates fitness…

Physics and Society · Physics 2011-04-25 D. D. Han , J. H. Qian , Y. G. Ma

This study examines the adaptive market hypothesis (AMH) in Japanese stock markets (TOPIX and TSE2). In particular, we measure the degree of market efficiency by using a time-varying model approach. The empirical results show that (1) the…

Statistical Finance · Quantitative Finance 2016-10-18 Akihiko Noda

Assuming the space dimension is not constant but decreases during the expansion of the Universe, we study chaotic inflation with the potential $m^2 \phi^2/2$. We write down field equations in the slow-roll approximation and define slow…

Astrophysics · Physics 2009-10-31 Forough Nasseri , Sohrab Rahvar

We combine geometric data analysis and stochastic modeling to describe the collective dynamics of complex systems. As an example we apply this approach to financial data and focus on the non-stationarity of the market correlation structure.…

Statistical Finance · Quantitative Finance 2015-09-30 Yuriy Stepanov , Philip Rinn , Thomas Guhr , Joachim Peinke , Rudi Schäfer

We propose a model for large field inflation in heterotic string theory. The construction applies the near alignment mechanism of Kim, Nilles, and Peloso. By including gaugino condensates and world-sheet instanton non-perturbative effects,…

High Energy Physics - Theory · Physics 2015-04-16 Tibra Ali , S. Shajidul Haque , Vishnu Jejjala

We investigate the shape of the Italian personal income distribution using microdata from the Survey on Household Income and Wealth, made publicly available by the Bank of Italy for the years 1977--2002. We find that the upper tail of the…

Other Condensed Matter · Physics 2009-01-31 F. Clementi , M. Gallegati

We model the influence of sharing large exogeneous losses to the reinsurance market by a bipartite graph. Using Pareto-tailed claims and multivariate regular variation we obtain asymptotic results for the Value-at-Risk and the Conditional…

Risk Management · Quantitative Finance 2015-11-16 Oliver Kley , Claudia Kluppelberg , Gesine Reinert

We show that the dynamical order parameters can be reexpressed in terms of the distribution of the staggered auto-correlation and response functions. We calculate these distributions for the out of equilibrium dynamics of the…

Condensed Matter · Physics 2009-10-22 A. Baldassarri , L. F. Cugliandolo , J. Kurchan , G. Parisi

This paper develops a method for estimating housing production functions when builders choose capital after observing local conditions that are unobserved by the econometrician. Because observed capital variation reflects both technological…

General Economics · Economics 2026-05-06 Yusuke Adachi

A truthful mechanism for a Bayesian single-item auction results with some ex-ante revenue for the seller, and some ex-ante total surplus for the buyers. We study the Pareto frontier of the set of seller-buyers ex-ante utilities, generated…

Computer Science and Game Theory · Computer Science 2026-02-13 Moshe Babaioff , Sijin Chen , Zhaohua Chen , Yiding Feng

In the present work we investigate the multiscale nature of the correlations for high frequency data (1 minute) in different futures markets over a period of two years, starting on the 1st of January 2003 and ending on the 31st of December…

Statistical Finance · Quantitative Finance 2009-11-13 M. Bartolozzi , C. Mellen , T. Di Matteo , T. Aste

The Hylland-Zeckhauser gave a classic pricing-based mechanism (HZ) for a one-sided matching market; it yields allocations satisfying Pareto optimality and envy-freeness (Hylland and Zeckhauser, 1979), and the mechanism is incentive…

Computer Science and Game Theory · Computer Science 2023-10-26 Thorben Tröbst , Vijay V Vazirani

High frequency data in finance have led to a deeper understanding on probability distributions of market prices. Several facts seem to be well stablished by empirical evidence. Specifically, probability distributions have the following…

Statistical Mechanics · Physics 2009-10-31 Jaume Masoliver , Miquel Montero , Josep M. Porra

We show that for the Kuramoto model (with identical phase oscillators equally coupled) its global statistics and size of the basins of attraction can be estimated through the eigenvalues of all stable (frequency) synchronized states. This…

Chaotic Dynamics · Physics 2022-05-18 Antonio Mihara , Michael Zaks , Elbert E. N. Macau , Rene O. Medrano-T

This work presents an empirical study of the evolution of the consumer expenditure distribution in India during 1982-2007. We have used the National Sample Survey Organization data and analysed the expenditure distribution for the urban and…

General Finance · Quantitative Finance 2010-07-09 Abhik Ghosh , Kausik Gangopadhyay , B. Basu

The oscillations of the function $Z^2(t),\ t\in [0,T]$ around the main part $\sigma(T)$ of its mean-value are studied in this paper. It is proved that an almost equality of the corresponding areas holds true. This result cannot be obtained…

Classical Analysis and ODEs · Mathematics 2010-06-23 Jan Moser

The presence of significant cross-correlations between the synchronous time evolution of a pair of equity returns is a well-known empirical fact. The Pearson correlation is commonly used to indicate the level of similarity in the price…

Statistical Finance · Quantitative Finance 2014-02-07 Dror Y. Kenett , Xuqing Huang , Irena Vodenska , Shlomo Havlin , H. Eugene Stanley
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