The book by George A. Akerlof and Robert J. Shiller “Animal Spirits, How Human Psychology Drives the Economy, and Why It Matters for Global Capitalism”  has inspired me to share with you these thoughts. John Maynard Keynes introduced the term “Animal spirits” in 1936 to describe the instincts, proclivities and emotions that ostensibly influence and guide human behavior in business and so impact the economic outcome and development. G. A. Akerlof and R. J. Shiller provide in this book evidence that contemporary theory of economics based on the hypotheses of efficient market and rational expectation fails to explain economic processes in the periods of global crises. They further develop the term of Animal Spirits seeking to explain the evolution of global economy in the periods of crises and depression and looking for the appropriate measures how to overcome the economic slump. Continue reading “Vygintas Gontis: “Animal Spirits” – the old term of economics forcing us to reevaluate contemporary theories” »
The authors of Physics of Risk website encourage all to endorse the open economic principles. All the relevant information is available on http://openeconomics.net/principles/ website.
If one would start speaking about the dragon kings and black swans, many people would think that the one is talking about the fairy tales. But these terms are used then speaking about the events in the financial markets! Black swans are rare, but observable in the nature. Dragon kings are only observed in the fairy tales. So we would be amused if we would see the black swan with our own eyes, yet if we would see the dragon king we would be completely shocked. In nature these kinds of event are extremely rare and improbable, while in the financial markets we see these kind of events frequently enough. Bellow you can find a talk by Didier Sornette (taken from ted.com, some of the related info is available from blog.ted.com), who talks about these kind of events, their impact and possibilities to predict. Continue reading “Didier Sornette: How we can predict the next financial crisis?” »
The summer of 2013 will be a very interesting one for us. In June we will participate in four conferences, in Lithuania and abroad, and present five reports (4 talks and 1 poster) on the most recent research done by us. During July and August we will have two students-trainees, who will participate in the project “Promotion of Student Scientific Activities” from the Research Council of Lithuania. The training will be held on the topics of “Economic convergence as thermodynamic appreciation of real currency exchange rate” (supervisor dr. (HP) Vygintas Gontis; student-trainee Kęstutis Acus) and “Controling complex stochastic systems” (supervisor Aleksejus Kononovičius; student-trainee Ignas Kazakevičius). Continue reading “Lots of activities during the summer of 2013″ »
The most active and well known scientists contributing towards FuturICT project have organized their ideas into few articles, which discuss the current situation in contemporary complex social system modeling. These articles we published in a special issue of “The European Physical Journal Special Topics”. Most of the articles are available for free, thus we invite you to familiarize yourselves with them.
Econophysics is not a very well known interdisciplinary field of research in Lithuania. There are very few Lithuania based scientists who are related to this very young and rapidly developing branch of Physics. Therefore we, being ones of the few, feel an obligation to introduce Econophysics to the other scientists, businessmen and the whole broader society. In this text we will discuss the basic ideas, current trends and the most common problems relevant to the field of Econophysics.
The name of Econophysics implies the application of physics, mostly the methods taken from Statistical Physics, to the Economics. Though until recently most of the econophysicists used to focus on the financial markets. Currently the field is expanding very rapidly and now concerns something more than just regular Economics or Finance – many physicists now attempt to tackle problems in the other social sciences. For these broader approaches there are other overlapping terms including Sociophysics, Physics of Risk, Physics of Socio-Economic Systems and other.
At this point we would like to stop the discussion on the use of the terminology. Recall that the aim of this text is somewhat different from that. We aim to familiarize you with the Econophysics! Continue reading “Vygintas Gontis: Econophysics – brand new outlook into social sciences” »
In the last year we have already written that work in the context of Physics of Risk provides varying insights into very different complex systems. The previous article  contained brief review of Physics of Risk platform and discussions on some of the models published using it. This article received great response and was even awarded the Best Paper Award by the publisher IARIA. Continue reading “IARIA publication reviewing our different research directions” »