Physics of Econophysics

Abstract

Econophysics is a new area developed recently by the cooperation between economists, mathematicians and physicists. It's not a tool to predict future prices of stocks and exchange rates. It applies idea, method and models in Statistical Physics and Complexity to analyze data from economical phenomena. In this paper, three examples from three active main topics in Econophysics are presented first. Then using these examples, we analyze the role of Physics in Econophysics. Some comments and emphasis on Physics of Econophysics are included. New idea of network analysis for economy systems is proposed, while the actual analysis is still in progress.

23 pages, 16 figures, a review paper created for usage in our own group, maybe valuable for others

References in corpus (16)

• Scaling of the distribution of fluctuations of financial market indices
• Fractional calculus and continuous-time finance
• The statistical properties of the volatility of price fluctuations
• Topology of the World Trade Web
• Exponential and power-law probability distributions of wealth and income in the United Kingdom and the United States
• Scaling of the distribution of price fluctuations of individual companies
• Topology of correlation based minimal spanning trees in real and model markets
• Evidence for the exponential distribution of income in the USA
• Universal features in the growth dynamics of complex organizations
• Power Law Scaling for a System of Interacting Units with Complex Internal Structure
• Quantifying Stock Price Response to Demand Fluctuations
• Volatility clustering and scaling for financial time series due to attractor bubbling
• Variety and Volatility in Financial Markets
• Scaling behavior in land markets
• Ensemble properties of securities traded in the NASDAQ market
• Division of Labor as the Result of Phase Transition