Skip to main content

Moving on to Econophysics

  • Chapter
  • First Online:
From Galileo to Modern Economics
  • 443 Accesses

Abstract

Econophysics is a broad, magmatic field, and there is no intention here to even briefly outline its main research areas. There are at least a dozen highly scientific texts that deal in detail with the statistical, mathematical, and theoretical facets of this new field. Our purpose here is different: we look at the discipline to capture the internal dynamics that are expanding and transforming econophysics.

Ever since the birth of econophysics, there has been an astonishing growth in the publications relating to this discipline (scientific articles and books), and this makes it difficult to have even a vague perception of the range of topics addressed by econophysicists. To gauge the directions that econophysics (an empirically founded discipline) is taking, we charted its lexical development from its early years to the present.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 69.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 89.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 119.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Abergel, F. et al. eds. 2015. Econophysics and Data Driven Modelling of Market Dynamics. Heidelberg: Springer

    Google Scholar 

  • Abergel, F. et al., eds. 2017. Econophysics and Sociophysics: Recent Progress and Future Directions. Heidelberg: Springer.

    Google Scholar 

  • Alfi, V., M. Cristelli, L. Pietronero, and A. Zaccaria. 2009. “Minimal agent based model for financial markets I.” The European Physical Journal B 67: 385–397 [Figures 8.1, 8.2].

    Article  Google Scholar 

  • Andriani, P and B. McKelvey. 2011.”From Skew Distribution tp Power-law Science.” In Allen, P. S. Maguire and B. McKelvey eds. 2011. The SAGE Handbook of Complexity and Management. Los Angeles: SAGE. 254–273

    Google Scholar 

  • Area Leao Pereira de, E.J., M.F. da Silva, and H.B.B. Pereira. 2017. “Econophysics: Past and Present.” Physica A. 473: 251–261 [Figures 8.1, 8.2].

    Google Scholar 

  • Auloos, M., P. Clippe, J. Miskiewicz, and A. Pekalki. 2004. “A (reactive) lattice-gas approach to economic cycles.” Physica A. 344: 1–7. [Figures 8.1, 8.2].

    Google Scholar 

  • Bachelier, L. 1900. “Théorie de Spéculation.” Annales Scientifique de l’EcoleNormal Supériore t. 17: 21–86. Reprinted and translated in Davis, M. and E. Etheridge. 2006. Louis Bachelier’s Theory of Speculation. The Origins of Modern Finance. Princeton: Princeton University Press.

    Google Scholar 

  • Bargigli, L. and G. Tedeschi. 2014. “Interaction in agent-based economics: A survey on the network approach.” Physica A 399: 1–15 [Figures 8.1, 8.2].

    Google Scholar 

  • Bassani, C.F., and The CIPS, eds. 2006. Ettore Majorana. Scientific Papers on Occasion of the Centenary of His Birth. Berlin: Springer.

    Google Scholar 

  • Bouchaud, J-P. 2001. “Power laws in economics and finance some ideas from physics”. Quantitative Finance 1(1): 105–112. [Figures 8.1, 8.2].

    Google Scholar 

  • Chakrabarti, B. K., A. Chakraborti, and A. Chatterjee, eds. 2006. Econophysics and Sociophysics. Weinheim: Wiley.

    Google Scholar 

  • Chatterjee, A. and P. Sen. 2010. “Agent dynamics in kinetic models of wealth Exchange.” Physical Review E 82: 056117 [Figures 8.1, 8.2].

    Google Scholar 

  • Chen, S-H. and S-P. Li. 2012. “Econophysics: Bridge over a turbulent current”. International Review of Financial Analysis 23:1–10 [Figures 8.1, 8.2].

    Google Scholar 

  • Clementi, F., M. Gallegati. 2005. “Power law tails in the Italian personal income distribution.” Physica A 350: 427–438 [Figures 8.1, 8.2].

    Google Scholar 

  • Cockshott, W.P., A.F. Cottrell, G.J. Michaelson, I.P. Wright, and V.M. Yakovenko. 2009. Classical Econophysics. London & New York: Routledge.

    Google Scholar 

  • Corso, G., L.S. Lucena, Z.D. Thomé. 2003. “The small-world of economy: a speculative proposal.” Physica A 324: 430–436 [Figures 8.1, 8.2].

    Google Scholar 

  • Düring, B., and G. Toscani. 2008. International and domestic trading and wealth distribution.” Communications in Mathematical Science 6(4): 1043–1058. [Figures 8.1, 8.2].

    Google Scholar 

  • Fujiwara, Y., C. Di Guilmi, H. Aoyama, M. Gallegati, and W. Souma. 2004. “Do Pareto-Zipf and Gibrat laws hold true? An analysis with European firms”. Physica A. 335: 197–216 [Figures 8.1, 8.2].

    Google Scholar 

  • Gallegati, M., S. Keen, T. Lux, and P. Ormerod. 2006. “Worrying trends in econophysics”. Physica A. 370: 1–6 [Figures 8.1, 8.2].

    Google Scholar 

  • Gallegati, M. 2016. “Beyond econophysics (not to mention mainstream economics)”. The European Physical Journal. 225: 3179–3185. [Figures 8.1, 8.2].

    Google Scholar 

  • Hazan, A. 2017. “Volume of the steady-state space of financial flows in a monetary stock-flow-consistent model.” Physica A 473: 589–602 [Figures 8.1, 8.2].

    Google Scholar 

  • Huang W-Q., S. Yao, X-T. Zhuang, and Y. Yuan. 2017. “Dynamic asset trees in the US stock market: Structure variation and market phenomena.” Chaos, Solitons and Fractals 94: 44–53 [Figures 8.1, 8.2].

    Google Scholar 

  • Huber, T.A. and D. Sornette. 2016. “Can there be a physics of financial markets? Methodological reflections on econophysics”. The European Physical Journal. 225: 3187–2210. [Figures 8.1, 8.2].

    Google Scholar 

  • Ikeda, Y., H. Aoyama, H. Iyetomi, T. Mizuno, T. Ohnishi, Y. Sakamoto, and T. Watanabe. 2016. “Econophysics Point of View of Trade Liberalization.” RIETI Discussion Paper Series 16-E-026 [Figures 8.1, 8.2].

    Google Scholar 

  • Jovanovic F. and C. Schinckus. 2017. Econophysics and Financial Economics: An Emerging Dialogue. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Kleiber, C. and S. Kotz. 2003. Statistical Size Distributions in Economics and Actuarial Sciences. Hoboken: Wiley.

    Book  Google Scholar 

  • Lux, T. and S. Alfarano. 2016. “Financial power laws: Empirical evidence, models and mechanisms”. Chaos, Solitons and Fractals. 88: 3–18. [Figures 8.1, 8.2].

    Google Scholar 

  • Majorana, E. 2006. “The value of statistical laws in physics and social sciences.” In F. Bassani et al. eds. 2006. Bologna and Berlin: SIF and Springer

    Google Scholar 

  • Mandelbrot, B. 1960. “The Pareto-Lévy Law and the Distribution of Income.” International Economic Review 1(2): 79–106.

    Article  Google Scholar 

  • Mandelbrot, B. 1963[1999]. “New Methods in Statistical Economics.” Reprinted in J.C. Wood and M. McLure, eds. Vilfredo Pareto. Critical Assessments of Leading Economists. 4: 241–63.

    Google Scholar 

  • Mantegna, R.N. and E.H. Stanley. 2000. An Introduction to Econophysics. Correlations and Complexity in Economics. Cambridge: Cambridge University Press.

    Google Scholar 

  • McCauley, J.L. 2006. “Response to worrying trends in econophysics”. MPRA Paper no. 2129 [Figures 8.1, 8.2].

    Google Scholar 

  • McCauley, J.L. 2009. Dynamics of Markets. The New Financial Economics. Cambridge: Cambridge University Press. 2nd ed. [Figures 8.1, 8.2].

    Google Scholar 

  • Mizuno, T., H. Takayasu, M. Takayasu. 2006. “Correlation networks among currencies.” Physica A 364: 336–342 [Figures 8.1, 8.2].

    Google Scholar 

  • Newman, M.E.J. 2006. “Power Laws, Pareto Distributions and Zipf’s Law.” Contemporary Physics. 46 (5): 323–351 [Figures 8.1, 8.2].

    Google Scholar 

  • Ormerod, P. 2016. “Ten years after ‘Worrying trends in econophysics’: developments and current challenges”. The European Physical Journal. 225: 3281–3291. [Figures 8.1, 8.2].

    Google Scholar 

  • Pareto, V. 1921. “Prefazione” a De Pietri-Tonelli 1921b.

    Google Scholar 

  • Patriarca, M., E. Heinsalu, A. Chakraborti. 2010. “Basic kinetic wealth-exchange models: common features and open problems.” The European Physical Journal B 73 (1): 145–153 [Figures 8.1, 8.2].

  • Ponta, L., M. Raberto, and S. Cincotti. 2011. “A multi-assets artificial stock market with zero-intelligence traders. A Letter Journal Exploring the Frontiers of Physics. 93: 28002 [Figures 8.1, 8.2].

    Google Scholar 

  • Richmond P., J. Mimkes, and S. Hutzler. 2013. Econophysics & Physical Economics. Oxford: Oxford University Press.

    Book  Google Scholar 

  • Samanidou E., E. Zschischang, D. Stauffer and T. Lux. 2007. “Agent-based models of financial markets.” Report on Progress in Physics. 70: 409–450. [Figures 8.1, 8.2].

    Google Scholar 

  • Samuelson, P.A. (1965). “Proof That Properly Anticipated Prices Fluctuate Randomly.” Industrial Management Review. 6 (2): 41–49.

    Google Scholar 

  • Schulz, M. 2003. Statistical Physics and Economics. Concepts, Tools, and Applications. Heidelberg: Springer

    Google Scholar 

  • Schinckus C. 2013. “Between complexity of modelling and modelling of complexity: An essay on econophysics”. Physica A 392: 3654–3665. [Figures 8.1, 8.2].

    Google Scholar 

  • Slanina, F. 2014. Essentials of Econophysics Modelling. Oxford: Oxford University Press.

    Google Scholar 

  • Tesfatsion, Leigh. 2006, “Agent-Based Computational Modeling and Macroeconomics.” In David Colander (ed.) Post-Walrasian Macroeconomics. Cambridge: Cambridge University Press. 175–202.

    Chapter  Google Scholar 

  • Yegorov, Y. 2007. “Econo-physics: A Perspective of Matching Two Sciences.” Evol. Inst. Econ. Rev. 4(1): 143–170 [Figures 8.1, 8.2].

    Google Scholar 

  • Zheng, B., T. Qiu, and F. Ren. 2004. “Two-phase phenomena, minority games, and herding models.” Physical Review E 69, 046115 [Figures 8.1, 8.2].

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

Copyright information

© 2018 The Author(s)

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Tusset, G. (2018). Moving on to Econophysics. In: From Galileo to Modern Economics. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-95612-1_8

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-95612-1_8

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-319-95611-4

  • Online ISBN: 978-3-319-95612-1

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics