Publication

Jun 2008

The publication primarily discusses the application of statistical physics methodology in economics and finance, termed econophysics. The impact of econophysics in financial economics is evaluated in the second part, followed by explanations of scaling laws observed in finance that stem from stochastic behavioral models. The author concludes that the crossover of ideas between statistical physics and economics enriches the analysis of collective behavior in markets and other areas of social interaction.

Download English (PDF, 69 pages, 1000 KB)
Author Thomas Lux
Series Kiel Institute Working Papers
Issue 1425
Publisher Kiel Institute for the World Economy
Copyright © 2008 Kiel Institute for the World Economy.
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