Econophysics

The remarkable evolution of econophysics research has brought the deep synthesis of ideas derived from economics and physics to subjects as diverse as education, banking, finance, and the administration of large institutions.  The original papers in this collection present a broad summary of these advances, written by interdisciplinary specialists.   Included are studies on subjects in the development of econophysics; on the perspectives offered by econophysics on large problems in economics and finance, including the 2008-9 financial crisis; and on higher education and group decision making.  The introductions and insights they provide will benefit everyone interested in applications of this new transdisciplinary science.

• Ten papers present an updated version of the origins, issues, and applications of econophysics
• Economics and finance chapters consider lessons learned from the 2008-9 financial crisis
• Sociophysics chapters propose new thinking on educational reforms and group decision making

Upper-division undergraduates, graduate students, and researchers in economics and finance

Dedication

List of Contributors

Part I: General Background of Econophysics

Chapter 1. History and Role of Econophysics in Scientific Research

1.1 Introduction

1.2 Relations between Economics and Physics

1.3 Relations between Economists and Physicists

1.4 History of Econophysics

1.5 Some Definitional Issues

1.6 Econophysics and Romanian Econophysicists

References

Further Reading

Chapter 2. Multidisciplinary Modeling Knowledge and Unidisciplinary Isolation

2.1 Introduction

2.2 Multidisciplinary Modeling

2.3 The Principles of Multidisciplinary Modeling

2.4 A Final Remark

References

Part II: Economics and Finance

Chapter 3. The Efficiency of Capital Markets: Hypothesis or Approximation

3.1 Introduction: Defining Market Efficiency

3.2 Test of Market Efficiency

3.3 Data and Procedure

3.4 Variability of Market Efficiency

3.5 Conclusions

Acknowledgments

References

Chapter 4. Nonlinear Mechanisms of Generating Power Laws in Socioeconomic Systems

4.1 What are the Power Laws?

4.2 Are the Stock Market Returns Gaussian Distributed?

4.3 Something About the Richest People in the World

4.4 From the Smallest Towns to the Largest Cities

4.5 What Mark Have You Got Today?

4.6 Conclusion

References

Chapter 5. Was It Possible to Forecast the Credit Crunch? (Monte Carlo Simulation of Integrated Market and Credit Risk)

5.1 Introduction

5.2 Introduction to Financial Theory

5.3 Methodology of Credit Drivers

5.4 Data Description and Analysis

5.5 Results and Summary

References

Chapter 6. A Quantum Mechanics Model May Explain the Infringement of Some Financial Rules in Spite of Stiff Supervision

6.1 Introduction

6.2 Classical Approach

6.3