By Rosario N. Mantegna

Statistical physics thoughts comparable to stochastic dynamics, brief- and long-range correlations, self-similarity and scaling, allow an knowing of the worldwide habit of financial platforms with no first having to see a close microscopic description of the approach. This pioneering textual content explores using those innovations within the description of monetary platforms, the dynamic new area of expertise of econophysics. The authors illustrate the scaling recommendations utilized in chance thought, severe phenomena, and fully-developed turbulent fluids and observe them to monetary time sequence. additionally they current a brand new stochastic version that monitors a number of of the statistical homes saw in empirical facts. Physicists will locate the appliance of statistical physics innovations to fiscal structures interesting. Economists and different monetary pros will enjoy the book's empirical research tools and well-formulated theoretical instruments that might let them describe structures composed of a big variety of interacting subsystems.