scholarly journals Micro-Macro Connected Stochastic Dynamic Economic Behavior Systems

Econometrics ◽  
2018 ◽  
Vol 6 (4) ◽  
pp. 46
Author(s):  
George Judge
Keyword(s):  
Stochastic Dynamics ◽  
Economic Behavior ◽  
Stochastic Dynamic ◽  
Information Theoretic ◽  
Interacting Agents ◽  
Income Data ◽  
Micro Level ◽  
Power Divergence ◽  
Statistical Systems ◽  
Behavior Systems

In this paper, we borrow some of the key concepts of nonequilibrium statistical systems, to develop a framework for analyzing a self-organizing-optimizing system of independent interacting agents, with nonlinear dynamics at the macro level that is based on stochastic individual behavior at the micro level. We demonstrate the use of entropy-divergence methods and micro income data to evaluate and understand the hidden aspects of stochastic dynamics that drives macroeconomic behavior systems and discuss how to empirically represent and evaluate their nonequilibrium nature. Empirical applications of the information theoretic family of power divergence measures-entropic functions, interpreted in a probability context with Markov dynamics, are presented.

Information Theoretic Competitiveness Composite Indicator at Micro Level

2014 ◽  
Vol 123 (2) ◽  
pp. 349-370
Author(s):  
Rosa Bernardini Papalia ◽  
Pinuccia Calia ◽  
Carlo Filippucci
Keyword(s):  
Composite Indicator ◽  
Information Theoretic ◽  
Micro Level

Stochastic dynamics of dielectric elastomer balloon with viscoelasticity under pressure disturbance

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Hao Dong ◽  
Lin Du ◽  
Rongchun Hu ◽  
Shuo Zhang ◽  
Zichen Deng
Keyword(s):  
High Efficiency ◽  
Stochastic Dynamics ◽  
Stretch Ratio ◽  
Dielectric Elastomer ◽  
Mapping Method ◽  
The State ◽  
Stochastic Dynamic ◽  
Steady State Probability ◽  
Generalized Cell Mapping ◽  
Biological Compatibility

Abstract Dielectric elastomers are widely used in many fields due to their advantages of high deformability, light weight, biological compatibility, and high efficiency. In this study, the stochastic dynamic response and bifurcation of a dielectric elastomer balloon (DEB) with viscoelasticity are investigated. Firstly, the rheological model is adopted to describe the viscoelasticity of the DEB, and the dynamic model is deduced by using the free energy method. The effect of viscoelasticity on the state of equilibrium with static pressure and voltage is analysed. Then, the stochastic differential equation about the perturbation around the state of equilibrium is derived when the DEB is under random pressure and static voltage. The steady-state probability densities of the perturbation stretch ratio are determined by the generalized cell mapping method. The effects of parameter conditions on the mean value of the perturbation stretch ratio are calculated. Finally, sinusoidal voltage and random pressure are applied to the viscoelastic DEB, and the phenomenon of P-bifurcation is observed. Our results are compared with those obtained from Monte Carlo simulation to verify their accuracy. This work provides a potential theoretical reference for the design and application of DEs.

Earth System Dynamic Intelligence with Quantum Technologies: Seeing the “Invisible”, Predicting the “Unpredictable” in a Critically Changing World

2021 ◽  
Author(s):  
Rui A. P. Perdigão
Keyword(s):  
Information Technologies ◽  
Complex Problem ◽  
Warning Signs ◽  
System Dynamic ◽  
Stochastic Dynamic ◽  
Earth System ◽  
Dynamic Prediction ◽  
Information Theoretic ◽  
Hybrid Approaches ◽  
Changing World

We hereby embark on a frontier journey articulating two of our flagship programs – “Earth System Dynamic Intelligence” and “Quantum Information Technologies in the Earth Sciences” – to take the pulse of our planet and discern its manifold complexity in a critically changing world. Going beyond the traditional stochastic-dynamic, information-theoretic, artificial intelligence, mechanistic and hybrid approaches to information and complexity, the underlying fundamental science ignites disruptive developments empowering complex problem solving across frontier natural, social and technical geosciences. Taking aim at complex multiscale planetary problems, the roles of our flagships are put into evidence in different contexts, ranging from I) Interdisciplinary analytics, model design and dynamic prediction of hydro-climatic and broader geophysical criticalities and extremes across multiple spatiotemporal scales; to II) Sensing the pulse of our planet and detecting early warning signs of geophysical phenomena from Space with our Meteoceanics QITES Constellation, at the interface between our latest developments in non-linear dynamics and emerging quantum technologies.

Earth System Dynamic Intelligence - ESDI

2021 ◽  
Author(s):  
Rui A. P. Perdigão
Keyword(s):  
Information Technologies ◽  
Complex Problem ◽  
System Dynamic ◽  
Stochastic Dynamic ◽  
Earth System ◽  
Dynamic Information ◽  
Information Theoretic ◽  
Hybrid Techniques ◽  
Process Understanding ◽  
Shed Light

Earth System Dynamic Intelligence (ESDI) entails developing and making innovative use of emerging concepts and pathways in mathematical geophysics, Earth System Dynamics, and information technologies to sense, monitor, harness, analyze, model and fundamentally unveil dynamic understanding across the natural, social and technical geosciences, including the associated manifold multiscale multidomain processes, interactions and complexity, along with the associated predictability and uncertainty dynamics. The ESDI Flagship initiative ignites the development, discussion and cross-fertilization of novel theoretical insights, methodological developments and geophysical applications across interdisciplinary mathematical, geophysical and information technological approaches towards a cross-cutting, mathematically sound, physically consistent, socially conscious and operationally effective Earth System Dynamic Intelligence. Going beyond the well established stochastic-dynamic, information-theoretic, artificial intelligence, mechanistic and hybrid techniques, ESDI paves the way to exploratory and disruptive developments along emerging information physical intelligence pathways, and bridges fundamental and operational complex problem solving across frontier natural, social and technical geosciences. Overall, the ESDI Flagship breeds a nascent field and community where methodological ingenuity and natural process understanding come together to shed light onto fundamental theoretical aspects to build innovative methodologies, products and services to tackle real-world challenges facing our planet.

scholarly journals Policy analysis for globalized agriculture

2012 ◽  
Vol 49 (No. 2) ◽  
pp. 67-70
Author(s):  
S. Offutt
Keyword(s):  
World War Ii ◽  
Policy Analysis ◽  
The United States ◽  
Economic Behavior ◽  
Agricultural Economics ◽  
Farm Policy ◽  
World War ◽  
Farm Families ◽  
Micro Level ◽  
Data Requirements

Farms, farmers, farm families, and even farm policies have changed in the United States and Europe over the decades since World War II. Now it is time to bring the methods of farm policy analysis and the scope of data collection up to date. Agricultural economics, by tradition an empirical discipline, can offer important insights into the design, implementation, and effectiveness of policy. To succeed in this century, though, requires an emphasis on understanding micro-economic behavior at the level of the farm household. The paper presents fundamental aspects on methodology for micro-level farm policy analysis and data requirements for application of its intruments.

scholarly journals Institutional change and corporate governance reform

2011 ◽  
Vol 7 (1) ◽  
pp. 140-151
Author(s):  
Harilaos Mertzanis
Keyword(s):  
Financial Institutions ◽  
Global Financial Crisis ◽  
Learning By Doing ◽  
Economic Behavior ◽  
Governance Reform ◽  
Institutional Response ◽  
Changing Environment ◽  
Micro Level ◽  
Strategy Innovation ◽  
The Global Financial Crisis

The global financial crisis has posed challenges to financial institutions governance. Meeting these challenges requires an understanding of governance dynamics in relation to institutions’ performance within a changing environment. The nature and scope of institutional response to a changing environment depends upon inherited governance structures, including socioeconomic conventions and rules of behavior at the macro level and time, expertise and common commitment of directors at the micro level. Innovation and learning-by-doing in governance can be an effective reform strategy. Innovation in governance may include the establishment of new norms of economic behavior and the transformation of decision-making process and the reallocation of responsibilities to directors and senior management. This may also inform regulatory approaches in strengthening financial institutions governance, based on improved disclosure, independent and competent boards.

scholarly journals How Complexity and Uncertainty Grew with Algorithmic Trading

Entropy ◽  
2020 ◽  
Vol 22 (5) ◽  
pp. 499
Author(s):  
Martin Hilbert ◽  
David Darmon
Keyword(s):  
Machine Learning ◽  
Macro Level ◽  
Algorithmic Trading ◽  
Theoretic Analysis ◽  
Learning Paradigm ◽  
Information Theoretic ◽  
Fourth Digit ◽  
Local Uncertainty ◽  
Micro Level ◽  
Bid Ask Spreads

The machine-learning paradigm promises traders to reduce uncertainty through better predictions done by ever more complex algorithms. We ask about detectable results of both uncertainty and complexity at the aggregated market level. We analyzed almost one billion trades of eight currency pairs (2007–2017) and show that increased algorithmic trading is associated with more complex subsequences and more predictable structures in bid-ask spreads. However, algorithmic involvement is also associated with more future uncertainty, which seems contradictory, at first sight. On the micro-level, traders employ algorithms to reduce their local uncertainty by creating more complex algorithmic patterns. This entails more predictable structure and more complexity. On the macro-level, the increased overall complexity implies more combinatorial possibilities, and therefore, more uncertainty about the future. The chain rule of entropy reveals that uncertainty has been reduced when trading on the level of the fourth digit behind the dollar, while new uncertainty started to arise at the fifth digit behind the dollar (aka ‘pip-trading’). In short, our information theoretic analysis helps us to clarify that the seeming contradiction between decreased uncertainty on the micro-level and increased uncertainty on the macro-level is the result of the inherent relationship between complexity and uncertainty.

Information Recovery Related to Adaptive Economic Behavior and Choice

2020 ◽  
pp. 145-158
Author(s):  
George Judge
Keyword(s):  
Econometric Models ◽  
Economic Behavior ◽  
Theoretic Approach ◽  
Choice Data ◽  
Entropy Maximization ◽  
Information Theoretic ◽  
Information Recovery ◽  
Behavioral Parameters ◽  
Information Theoretic Approach ◽  
Inference Methods

In this chapter, we emphasize the connection between adaptive economic behavior and causal entropy maximization and suggest methods consistent with information recovery in an open dynamic economic system. This entropy-based causal adaptive behavior framework permits the use of a family of information-theoretic estimation and inference methods as a basis for linking the data and the unknown and unobservable system behavioral parameters. Several econometric models and applications are demonstrated, and economic-econometric implications of the information-theoretic approach are discussed. We end the chapter with a question concerning the use of traditional estimation and inference methods that do not have a connection to economic behavior and choice data.

scholarly journals The Stochastic Dynamics for Ecological Tourism System with Visitor Educational Intervention

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Dongping Wei ◽  
Shouwen Wen ◽  
Yizeng Chen ◽  
Yong Xu ◽  
Bing Liang
Keyword(s):  
Protected Areas ◽  
Educational Intervention ◽  
Stochastic Dynamics ◽  
Stochastic Dynamic ◽  
Site Management ◽  
Natural Conditions ◽  
Initial Value ◽  
Limited Efficacy ◽  
Ecological Tourism ◽  
Recreational Use

The ever-increasing visitation in parks and protected areas continues to present a considerable challenge for worldwide land managers with allowing recreational use while preserving natural conditions. In China, the fast expanding visitation in protected areas is quickly damaging the natural resources and precious culture without effective visitor education, while regulation and site management are also gaining very limited efficacy. We propose a differential equation to describe the ecological tourism system. Shown by the theoretical proof and numerical simulation, the ecological tourism system is unstable without any perturbed factors, especially visitor educational intervention, because the solution of the dynamic system explodes in a finite time given any initial value. Supposing that the intrinsic increasing rate of stakeholders in the systems stochastically perturbed by the visitor educational intervention, we discover that the stochastic dynamic model can effectively suppress the explosion of the solution. As such, we demonstrate that the tourism system can develop steadily and safely even under a large amount of visitors in public vacation, when employing continuous visitor education intervention programmes.

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