David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
In this chapter we consider economic systems, and in particular financial systems, from the perspective of the physics of complex systems (i.e. statistical physics, the theory of critical phenomena, and their cognates). This field of research is known as econophysics—alternative names are ‘financial physics’ and ‘statistical phynance.’ This title was coined in 1995 by Eugene Stanley, and since then its researchers have attempted to forge it as an independent and important field, one that stands in opposition to standard (‘Neo-Classical’) economic theory. Econophysicists argue that the empirical data is best explained in terms flowing out of statistical physics, according to which the (stylized) facts of economics are best understood as emergent properties of a complex system. However, some economists argue that the methods used by econophysics are not sufficient to prove the existence of underlying complexity in economic systems. The complexity claim can nonetheless be defended as a good example of an inference to the best explanation rather than a definitive deduction.
|Keywords||No keywords specified (fix it)|
No categories specified
(categorize this paper)
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library||
References found in this work BETA
No references found.
Citations of this work BETA
Ramsey M. Raafat, Nick Chater & Chris Frith (2009). Herding in Humans. Trends in Cognitive Sciences 13 (10):420-428.
Stefan Mendritzki (2014). To Stylize or Not to Stylize, is It a Fact Then? Clarifying the Role of Stylized Facts in Empirical Model Evaluation. Journal of Economic Methodology 21 (2):107-124.
Similar books and articles
Henrik Jeldtoft Jensen (1998). Self-Organized Criticality: Emergent Complex Behavior in Physical and Biological Systems. Cambridge University Press.
R. Badii (1997). Complexity: Hierarchical Structures and Scaling in Physics. Cambridge University Press.
Patrick McGivern & Alexander Rueger (2010). Emergence in Physics. In Antonella Corradini & Timothy O'Connor (eds.), Routledge Studies in the Philosophy of Science. Routledge 6--213.
Meinard Kuhlmann, How Do Microscopic Models of Financial Markets Explain? Models and Simulations, Proceedings.
Added to index2009-01-28
Total downloads62 ( #66,779 of 1,792,164 )
Recent downloads (6 months)26 ( #31,363 of 1,792,164 )
How can I increase my downloads?