Astrophysics in Quantum Relativistic Chaotic Condition for solving Economics Frustrated System
by: Arip Nurahman
Econophysics is an interdisciplinary research field, applying
theories and methods originally developed by physicists
in order to solve problems in economics,
usually those including uncertainty or stochastic processes and nonlinear
dynamics. Its application to the study of financial markets has
also been termed statistical finance referring to its
roots in statistical physics.
Physicists’ interest in the social sciences is not new; Daniel Bernoulli, as an example, was the originator of
utility-based preferences. One of the founders of neoclassical
economic theory, former Yale University Professor of Economics Irving
Fisher, was originally trained under the renowned Yale physicist,
Josiah Willard Gibbs.
Likewise, Jan Tinbergen, who won the first Nobel Prize in
economics in 1969 for having developed and applied dynamic models
for the analysis of economic processes, studied physics with Paul Ehrenfest at Leiden University.
Econophysics was started in the mid-1990s by several physicists
working in the subfield of statistical mechanics. Unsatisfied
with the traditional explanations and approaches of economists - which
usually prioritized simplified approaches for the sake of soluble
theoretical models over agreement with empirical data - they applied
tools and methods from physics, first to try to match financial data
sets, and then to explain more general economic phenomena.
One driving force behind econophysics arising at this time was the
sudden availability of large amounts of financial data, starting in the
1980s. It became apparent that traditional methods of analysis were
insufficient - standard economic methods dealt with homogeneous agents
and equilibrium, while many of the more interesting phenomena in
financial markets fundamentally depended on heterogeneous agents
and far-from-equilibrium situations.
