Explaining Financial Markets in Terms of Complex Systems

Kuhlmann, Meinard

doi:10.1086/677699

Cited by 16 publications

(11 citation statements)

References 26 publications

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“…That is, econophysicists typically still work in physics departments and publish in physics journals (Gingras and Schinckus 2012). Philosophical work on the methodological foundations of econophysics is fairly limited with a small literature, focusing on financial econophysics, due to Kuhlmann (2006Kuhlmann ( , 2014, Rickles (2007Rickles ( , 2008, Casini (2014) and Jhun et al (2017). In a recent paper, Thébault et al (2016) provided a philosophical analysis of the example of kinetic exchange models of wealth distributions.…”

Section: Econophysics Of Wealth Distributionsmentioning

confidence: 99%

Models on the move: Migration and imperialism

Bradley

Thébault

2019

Studies in History and Philosophy of Science Part A

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We introduce 'model migration' as a species of cross-disciplinary knowledge transfer whereby the representational function of a model is radically changed to allow application to a new disciplinary context. Controversies and confusions that often derive from this phenomenon will be illustrated in the context of econophysics and phylogeographic linguistics. Migration can be usefully contrasted with concept of 'imperialism', that has been influentially discussed in the context of geographical economics. In particular, imperialism, unlike migration, relies upon extension of the original model via an expansion of the domain of phenomena it is taken to adequately described. The success of imperialism thus requires expansion of the justificatory sanctioning of the original idealising assumptions to a new disciplinary context. Contrastingly, successful migration involves the radical representational re-interpretation of the original model, rather than its extension. Migration thus requires 're-sanctioning' of new 'counterpart idealisations' to allow application to an entirely different class of phenomena. Whereas legitimate scientific imperialism should be based on the pursuit of some form of ontological unification, no such requirement is need to legitimate the practice of model migration. The distinction between migration and imperialism will thus be shown to have significant normative as well as descriptive value.

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Section: Econophysics Of Wealth Distributionsmentioning

confidence: 99%

Models on the move: Migration and imperialism

Bradley

Thébault

2019

Studies in History and Philosophy of Science Part A

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“…Financial markets are increasingly referred to as complex systems by recognition of the vast interactivity between traders who are themselves, highly complex agents who both respond and contribute to the emergent market outcomes (Kuhlmann, 2014). Further, traders respond, adapt and learn from both endogenous (internal) feedback processes (e.g.…”

Section: Introductionmentioning

confidence: 99%

Turbulence in the financial markets: Cross-country differences in market volatility in response to COVID-19 pandemic policies

Bickley¹,

Chan²,

Torgler³

et al. 2020

Preprint

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COVID-19 has had far-reaching global effects on the health and wellbeing of individuals on every continent. The economic and financial market response has been equally disastrous with high levels of volatility. This study explores temporal relations between structural breaks, market volatility and government policy interventions for 28 countries and their respective financial market indices.File description:Scripts:breaks.do – test for the unknown structural breaks in the turnover data.turnover.do – merge the mobility dataset (change in mobility to residential), stay-at-home policy, COVID stats, and turnover. It also generates the dataset for the R code (should upload yours) and the rest of the analysis.hurstexponent.R - estimates/calculates log returns, performs STL Decomposition and MFDFA analysis. Data:mobility.dat - Google mobility databloomberg_turnover.dat - Raw traded value from Bloombergturnover.do - merged traded value datacsse.dat - COVID-19 statisticsPlease contact steven.bickley@hdr.qut.edu.au for questions and refer to our accompanying paper. Recommended Citation: TBAData use policy: Creative Commons Attribution CC BY standard.

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“…18 We again point to the existence of admirable work of Kuhlmann [2006Kuhlmann [ , 2014, Rickles [2007Rickles [ , 2008 and Casini ([2014]) focusing upon financial econophysics.…”

Section: Acknowledgementmentioning

confidence: 98%

“…For more on econophysics' status as multi-, inter-or trans-disciplinary, see Rosser, Jovanovic andSchinckus ([2010, 2013b]). 4 For work focusing on the methodological foundations of financial econophysics see Kuhlmann ([2006Kuhlmann ([ , 2014), Rickles ([2007Rickles ([ , 2008), Casini ([2014]) idealisations involved in the DY model, by comparison with the (remarkably similar) Boltzmannian gas model. In Section 4 we present a second, more sophisticated, econophysics income model (the 'CCM' model) based upon a specific 'de-idealisation' of the the DY model.…”

Section: Econophysics and Its Discontentsmentioning

confidence: 99%

Modelling Inequality

Thébault

Bradley

Reutlinger

2018

The British Journal for the Philosophy of Science

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Econophysics is a new and exciting cross-disciplinary research field that applies models and modelling techniques from statistical physics to economic systems. It is not, however, without its critics: prominent figures in more mainstream economic theory have criticised some elements of the methodology of econophysics. One of the main lines of criticism concerns the nature of the modelling assumptions and idealisations involved, and a particular target are 'kinetic exchange' approaches used to model the emergence of inequality within the distribution of individual monetary income. This paper will consider such models in detail, and assess the warrant of the criticisms drawing upon the philosophical literature on modelling and idealisation. Our aim is to provide the first steps towards informed mediation of this important and interesting interdisciplinary debate, and our hope is to offer guidance with regard to both the practice of modelling inequality, and the inequality of modelling practice.

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Explaining Financial Markets in Terms of Complex Systems

Cited by 16 publications

References 26 publications

Models on the move: Migration and imperialism

Models on the move: Migration and imperialism

Turbulence in the financial markets: Cross-country differences in market volatility in response to COVID-19 pandemic policies

Modelling Inequality

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