Dear Taha,
There is a new book applying standard
statistical mechanics simulation techniques
to financial markets.
This is what Nobel Prize Laureate Harry Markowitz wrote of it:
"Levy, Solomon and Levy's "Microscopic Simulation of Financial Markets" points
us towards the future of financial economics.
If we restrict ourselves to models which can be solved analytically,
we will be modeling for our mutual entertainment,
not to maximize explanatory or predictive power."
The book can be ordered from Academic Press; details at:
http://www.apcatalog.com/cgi-bin/AP?ISBN=0124458904&LOCATION=US&FORM=FORM2
On more theoretical issues you can use the pedagogical review
"Generalized Lotka-Volterra (GLV) Models and
Generic Emergence of Scaling Laws in Stock Markets"
http://xxx.lanl.gov/abs/cond-mat/9901250
which appeared in
"Applications of Simulation to Social Sciences"
,Eds: G Ballot and G Weisbuch; Hermes Science Publications 2000
Hope it helps
*************************************************************
Sorin Solomon e-mail: [log in to unmask]
Professor of Physics http://shum.huji.ac.il/~sorin
Theoretical Physics Department Tel work:++972-2-6585761
Racah Institute of Physics Tel Home:++972-2-5818301
Givat Ram ++972-2-5823579
Hebrew University of Jerusalem Fax:++972-2-5400022
**************************************************************
Taha Rangwala wrote:
> Hi,
> I am a senior undergrad majoring in finance. I have an upcoming
> presentation - for a class in general physics (introductory) - about the
> application of physics in economics. I have read numerous books and papers
> on the web talking abt the pareto-levy and the gaussian distribution, and
> i must admit most of i it dont understand. Even if I give it my best shot,
> im sure my audience wont understand my presentation (as they are mostly
> freshman undergrads). So i was hoping if someone could help me by
> providing me a clearer (and riduulosly simpler) picture of how physics has
> a played a role in economics.
>
> Any help in this matter is greatly appreciated
>
> Taha Rangwala
>
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>
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