Econophysics – A Modern Science forAddressing Economic Issues

  • Jayaramana.K Department of Economics, Periyar University, Salem-11, India
  • Selvapandiyanb.M P.G and Research Department of Physics, Sri Vidya Mandir Arts & Science College, Uthangarai Tamil Nadu, India- 636 902
Keywords: Econophysics,, stochastic, financial market, chaos theory, thermodynamics

Abstract

Econophysics is a subject enveloping physics and economics and mainly the theories and methods developed by the physics people are deployed to solve the economic problems. It is a multi-disciplinary subject which is very young and dynamic. It contains uncertainty concepts and non-linear dynamics. Physicists tried applying their domain knowledge to financial data and to the economic phenomena. The term was first coined by H.Eugene Stanely to describe the contributions of physicists to the problems of stock markets in Statistical Physics Conference in Kolkata in 1995. This is one of the youngest subjects offering high scope for solving various economic problems had. There have been dramatic changes in the functioning of markets, complexity of products and the available data sets. The cost of computational power and networks has led to the emergence of huge data base. This has to be analyzed using the econophysics models. The job of the econophysicists is to analyze the data with the help ofmodels and validate them. The financial crisis the world witnessed bore the reason for the development
of this subject. The Department of Physics, Saha institute of Nuclear Physics is spearheading the development of Econophysics concepts for providing solutions to the real world problems. It mainly concentrates on model building for understanding the market dynamics

Published
2015-10-30