This paper is aimed more at an economics audience than an econophysics audience, but I think that the general area of research is of interest to econophysicists: providing "microfoundations" for macroeconomics. There has been a lot done on this topic in economics but I think many economists would agree that the current situation is unsatisfactory. This paper takes an analytical approach that builds on existing economic models, but I think that many methods currently in use by econophysicists could yield interesting results in this area.
This paper is aimed more at an economics audience than an econophysics audience, but I think that the general area of research is of interest to econophysicists: providing "microfoundations" for macroeconomics. There has been a lot done on this topic in economics but I think many economists would agree that the current situation is unsatisfactory. This paper takes an analytical approach that builds on existing economic models, but I think that many methods currently in use by econophysicists could yield interesting results in this area.
I agree with Pertev Dural that it is important and interesting to look beyond financial economics. But there are also some examples of this sort of work, like Viaggiu et al. "Statistical ensembles for money and debt" (http://arxiv.org/abs/1109.0891) and Ikeda et al. "Coupled Oscillator Model of the Business Cycle with Fluctuating Goods Markets" (http://arxiv.org/abs/1110.6679). Given the dominance of financial economics in econophysics it would be nice to have a venue (e-journal? special issue? discussion area on the econophysics forum?) devoted to non-financial econophysics.
This was revised 7 Aug. The revised paper includes a simple motivating model that gives rise to a second-order dynamic, and fixes some minor typographical errors.
This paper is aimed more at an economics audience than an econophysics audience, but I think that the general area of research is of interest to econophysicists: providing "microfoundations" for macroeconomics. There has been a lot done on this topic in economics but I think many economists would agree that the current situation is unsatisfactory. This paper takes an analytical approach that builds on existing economic models, but I think that many methods currently in use by econophysicists could yield interesting results in this area.
This paper is aimed more at an economics audience than an econophysics audience, but I think that the general area of research is of interest to econophysicists: providing "microfoundations" for macroeconomics. There has been a lot done on this topic in economics but I think many economists would agree that the current situation is unsatisfactory. This paper takes an analytical approach that builds on existing economic models, but I think that many methods currently in use by econophysicists could yield interesting results in this area.
I agree with Pertev Dural that it is important and interesting to look beyond financial economics. But there are also some examples of this sort of work, like Viaggiu et al. "Statistical ensembles for money and debt" (http://arxiv.org/abs/1109.0891) and Ikeda et al. "Coupled Oscillator Model of the Business Cycle with Fluctuating Goods Markets" (http://arxiv.org/abs/1110.6679). Given the dominance of financial economics in econophysics it would be nice to have a venue (e-journal? special issue? discussion area on the econophysics forum?) devoted to non-financial econophysics.
This was revised 7 Aug. The revised paper includes a simple motivating model that gives rise to a second-order dynamic, and fixes some minor typographical errors.