Some Relevant Econophysics’ Moments of History, Definitions, Methods, Models and New Trends

New models result from a new way of thinking or from the trans-disciplinary methods used in new domains. Econophysics improve the quality of the classical research of Economics through its original models and methods. As a new or very young science Econophysics means either a new domain for physicists or new methods and ways of thinking for economists in the modern world. Physicists have recently established careers in the banking, financial, life insurance and marketing more easily than we could imagine only because their appetite for data and new laws of economic realities. After a brief historical background of the last three decades, a new section is defining what Econophysics is, and others underline significant methods, models, results, and trends. A final remark is inspired by the needs of globalize economies.Econophysics, Statistical Physics, Econophysics model, Quantum Statistics, power law, diffusion.

Nonlinear bubbles in Chinese Stock Markets in the 1990s

A time series of the Shanghai stock index in China for the 1990s is studied for the possible existence of nonlinear speculative bubbles. Three alternative specifications of fundamentals are estimated using VAR models of domestic and international variables. These are subjected to regime switching tests and rescaled range analysis tests. Nulls of no persistence were mostly rejected, suggesting the strong possibility of bubbles. Nonlinearities beyond ARCH effects using the BDS test could not be rejected. The paper also discusses the special circumstances of the stock market in an emerging transition economy.

China's New Third Board Market: Opportunities and Challenges

AbstractThe New Third Board Market is China's OTC market, established in 2006. Compared to China's Main Board Market and the Second Board Market, it attracts a lot of start-up companies needing financing with lower listing requirements. Meanwhile, it is full of opportunities and challenges that appeal to numerous securities traders and investors with the rapid development momentum. This paper is intended to build a comprehensive and systematic knowledge framework of China's New Third Board Market for those enterprises and individuals interested in it, and to provide a research base for future researchers

The Crisis of 2007-09: Nature, Causes, and Reactions

This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Journal of Interntional Economic Law following peer review. The definitive publisher-authenticated version [Journal of International Economic Law 13(3):531-550 2010] is available online at: http://jiel.oxfordjournals.org/content/13/3/531.ful

A discussion on corruption and political risks in Latin American countries: a general view using chaos theory

info:eu-repo/semantics/acceptedVersio

East Asian Capital Markets Integration - Steps Beyond ABMI

finance, development, institutions

The American Mortgage Crisis Implications on the international economics evolutions

Shock waves that produce large cracks deepen existing political, economic and social, and sometimes a new order replaces the old. In 2010, states across the world over blast, which invariably will lead to changing the current world order. Last twenty years have seen major changes in international economic context, the Soviet Union collapsed and centralized economies in Eastern Europe, reforms in China and India, export-based growth strategies in East Asia, all leading to the creation of a world economy market and also bringing 4 to 5 billion people.mortgage crisis, financial crisis, stock market, bank loans, international trade

An overreaction implementation of the coherent market hypothesis and option pricing

Inspired by the theory of social imitation (Weidlich 1970) and its adaptation to financial markets by the Coherent Market Hypothesis (Vaga 1990), we present a behavioral model of stock prices that supports the overreaction hypothesis. Using our dynamic stock price model, we develop a two factor general equilibrium model for pricing derivative securities. The two factors of our model are the stock price and a market polarization variable which determines the level of overreaction. We consider three kinds of market scenarios: Risk-neutral investors, representative Bernoulli investors and myopic Bernoulli investors. In case of the latter two, risk premia provide that herding as well as contrarian investor behaviour may be rationally explained and justified in equilibrium. Applying Monte Carlo methods, we examine the pricing of European call options. We show that option prices depend significantly on the level of overreaction, regardless of prevailing risk preferences: Downward overreaction leads to high option prices and upward overreaction results in low option prices. --behavioral finance,coherent market hypothesis,market polarization,option pricing,overreaction,chaotic market,repelling market