Complexity of Economical Systems

• Published in: Journal of engineering science and technology review 2015, Vol.8 (1), p.41-55
• Main Authors: Pavlos, G. P., Iliopoulos, A. C., Karakatsanis, L. P., Xenakis, M., Pavlos, E.
• Format: Article
• Language: English
• Subjects: Economical Dynamics; Fractal Dynamics; Non-equilibrium dynamics; Time series analysis; Tsallis non-extensive statistics; Turbulence
• ISSN: 1791-9320; 1791-2377; 1791-2377
• DOI: 10.25103/jestr.081.09

In this study new theoretical concepts are described concerning the interpretation of economical complex dynamics. In addition a summary of an extended algorithm of nonlinear time series analysis is provided which is applied not only in economical time series but also in other physical complex systems (e.g. [22, 24]). In general, Economy is a vast and complicated set of arrangements and actions wherein agents—consumers, firms, banks, investors, government agencies—buy and sell, speculate, trade, oversee, bring products into being, offer services, invest in companies, strategize, explore, forecast, compete, learn, innovate, and adapt. As a result the economic and financial variables such as foreign exchange rates, gross domestic product, interest rates, production, stock market prices and unemployment exhibit large-amplitude and aperiodic fluctuations evident in complex systems. Thus, the Economics can be considered as spatially distributed non-equilibrium complex system, for which new theoretical concepts, such as Tsallis non extensive statistical mechanics and strange dynamics, percolation, nonGaussian, multifractal and multiscale dynamics related to fractional Langevin equations can be used for modeling and understanding of the economical complexity locally or globally.