THE MINSKY MOMENT AS THE REVENGE OF ENTROPY

2019 ◽  
Vol 24 (1) ◽  
pp. 7-23
Author(s):  
J. Barkley Rosser
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
Positive Feedbacks ◽  
Speculative Bubble

Considering macroeconomies as systems subject to stochastic forms of entropic equilibria, we shall consider how deviations driven by positive feedbacks as in a speculative bubble can drive such an economy into an anti-entropic state that can suddenly collapse back into an entropic state, with such a collapse taking the form of a Minsky moment. This can manifest itself as shifts in the boundary between the portion of the income distribution that is best modeled as Boltzmann–Gibbs and that best modeled as a Paretian power law.

scholarly journals Income distribution in the Colombian economy from an econophysics perspective

2016 ◽  
Vol 35 (69) ◽  
pp. 691-707
Author(s):  
Hernando Quevedo Cubillos ◽  
María N. Quevedo
Keyword(s):  
Income Distribution ◽  
Economic System ◽  
Power Law ◽  
Gibbs Distribution ◽  
Economic Systems ◽  
Second Phase ◽  
Equilibrium Thermodynamic ◽  
Thermodynamic Models ◽  
Density Distributions ◽  
Pareto Distributions

Recently, in econophysics, it has been shown that it is possible to analyze economic systems as equilibrium thermodynamic models. We apply statistical thermodynamics methods to analyze income distribution in the Colombian economic system. Using the data obtained in random polls, we show that income distribution in the Colombian economic system is characterized by two specific phases. The first includes about 90% of the interviewed individuals, and is characterized by an exponential Boltzmann-Gibbs distribution. The second phase, which contains the individuals with the highest incomes, can be described by means of one or two power-law density distributions that are known as Pareto distributions.

scholarly journals Power Law Behavior and Tail Modeling on Low Income Distribution

2019 ◽  
Vol 7 (3) ◽  
pp. 70-77 ◽  
Author(s):  
Nurulkamal Masseran ◽  
Lai Hoi Yee ◽  
Muhammad Aslam Mohd Safari ◽  
Kamarulzaman Ibrahim
Keyword(s):  
Income Distribution ◽  
Power Law ◽  
Low Income

scholarly journals Microclimate feedbacks sustain power law clustering of encroaching coastal woody vegetation

2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Heng Huang ◽  
Philip A. Tuley ◽  
Chengyi Tu ◽  
Julie C. Zinnert ◽  
Ignacio Rodriguez-Iturbe ◽  
...  
Keyword(s):  
Power Law ◽  
Woody Plant ◽  
Woody Vegetation ◽  
Power Law Distribution ◽  
Woody Plant Encroachment ◽  
Positive Feedbacks ◽  
Critical Transitions ◽  
High Resolution Imagery ◽  
Ecosystem Level ◽  
Vegetation Patchiness

AbstractThe spatial pattern of vegetation patchiness may follow universal characteristic rules when the system is close to critical transitions between alternative states, which improves the anticipation of ecosystem-level state changes which are currently difficult to detect in real systems. However, the spatial patterning of vegetation patches in temperature-driven ecosystems have not been investigated yet. Here, using high-resolution imagery from 1972 to 2013 and a stochastic cellular automata model, we show that in a North American coastal ecosystem where woody plant encroachment has been happening, the size distribution of woody patches follows a power law when the system approaches a critical transition, which is sustained by the local positive feedbacks between vegetation and the surrounding microclimate. Therefore, the observed power law distribution of woody vegetation patchiness may be suggestive of critical transitions associated with temperature-driven woody plant encroachment in coastal and potentially other ecosystems.

scholarly journals PARETO'S LAW FOR INCOME OF INDIVIDUALS AND DEBT OF BANKRUPT COMPANIES

Fractals ◽  
2000 ◽  
Vol 08 (03) ◽  
pp. 293-300 ◽  
Author(s):  
HIDEAKI AOYAMA ◽  
WATARU SOUMA ◽  
YUICHI NAGAHARA ◽  
MITSUHIRO P. OKAZAKI ◽  
HIDEKI TAKAYASU ◽  
...  
Keyword(s):  
Probability Distribution ◽  
Income Distribution ◽  
Power Law ◽  
Income Tax ◽  
Model Building ◽  
Fiscal Year ◽  
Pareto Exponent ◽  
Pareto’S Law ◽  
Distribution Of Income

We analyze the distribution of income and income tax of individuals in Japan for the fiscal year 1998. From the rank-size plots, we find that the accumulated probability distribution of both data obey a power law with a Pareto exponent very close to -2. We also present an analysis of the distribution of the debts owed by bankrupt companies from 1997 to March 2000, which is consistent with a power law behavior with a Pareto exponent equal to -1. This power law is the same as that of the income distribution of companies. Possible implications of these findings for model building are discussed.

Positive feedbacks promote power-law clustering of Kalahari vegetation

Nature ◽  
2007 ◽  
Vol 449 (7159) ◽  
pp. 209-212 ◽  
Author(s):  
Todd M. Scanlon ◽  
Kelly K. Caylor ◽  
Simon A. Levin ◽  
Ignacio Rodriguez-Iturbe
Keyword(s):  
Power Law ◽  
Positive Feedbacks

scholarly journals Diagnosis and Prediction of IIGPS’ Countries Bubble Crashes during BREXIT

Mathematics ◽  
2021 ◽  
Vol 9 (9) ◽  
pp. 1003
Author(s):  
Bikramaditya Ghosh ◽  
Spyros Papathanasiou ◽  
Nikita Ramchandani ◽  
Dimitrios Kenourgios
Keyword(s):  
Critical Point ◽  
Power Law ◽  
Speculative Bubble ◽  
Financial Bubbles ◽  
Alternative Approach ◽  
Bubble Phase

We herein employ an alternative approach to model the financial bubbles prior to crashes and fit a log-periodic power law (LPPL) to IIGPS countries (Italy, Ireland, Greece, Portugal, and Spain) during Brexit. These countries represent the five financially troubled economies of the Eurozone that have suffered the most during the Brexit referendum. It was found that all 77 crashes across the five IIGPS nations from 19 January 2015 until 17 February 2020 strictly followed a log-periodic power law or other LPPL signature. They all had a speculative bubble phase (following the power law growth) that was then followed by a sudden crash immediately after reaching a critical point. Furthermore, their pattern coefficients were similar as well. This study would surely assist policymakers around the Eurozone to predict future crashes with the help of these parameters.

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