In a closed economic system, money is conserved. Thus, by analogy with energy, the equilibrium probability distribution of money must follow the exponential Boltzmann-Gibbs law characterized by an effective temperature equal to the average amount of money per economic agent. We demonstrate how the Boltzmann-Gibbs distribution emerges in computer simulations… (More)
We study the probability distribution of stock returns at mesoscopic time lags (return horizons) ranging from about an hour to about a month. While at shorter microscopic time lags the distribution has power-law tails, for mesoscopic times the bulk of the distribution (more than 99% of the probability) follows an exponential law. The slope of the… (More)
The terms highlighted in bold in Sec. I refer to other articles in this Encyclopedia. This paper reviews statistical models for money, wealth, and income distributions developed in the econophysics literature since late 1990s.
We present an empirical study of the subordination hypothesis for a stochastic time series of a stock price. The fluctuating rate of trading is identified with the stochastic variance of the stock price, as in the continuous-time random walk (CTRW) framework. The probability distribution of the stock price changes (log-returns) for a given number of trades… (More)
We predict a complete TM↔TE transformation of the polarization of terahertz electromagnetic waves reflected from a strongly anisotropic boundary of a layered superconductor. We consider the case when the wave is incident on the superconductor from a dielectric prism separated from the sample by a thin vacuum gap. The physical origin of the predicted… (More)