The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Econophysics

  • J. Barkley RosserJr.
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2701

Abstract

Econophysics, a term neologized only in 1995, refers to physicists studying economics problems using conceptual approaches from physics. Certain ideas are emphasized, especially the ubiquity of scaling laws in distributions of financial returns, income and wealth, firm sizes, city sizes, and other economic phenomena. However, economists have been using many of these techniques since much earlier, and the influence of ideas from physics on economics dates as far back as 1801 at least. Arguably, if economics successfully absorbs the most useful of this work, ‘econophysics’ may cease to exist.

Keywords

Bachelier, L. Black–Scholes formula Bounded rationality Brownian motion Canard, N.-F. Econobiology Econochemistry Econophysics Lévy distribution Lognormal distribution Pareto distribution Pareto, V. Random walk Scaling laws Statistical mechanics 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • J. Barkley RosserJr.
    • 1
  1. 1.