Econophysics is a transdisciplinary research field in heterodox economics. It applies theories and methods originally developed by physicists to problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics. Some of its application to the study of financial markets has also been termed statistical finance referring to its roots in statistical physics. Econophysics is closely related to social physics.
Econophysics is a transdisciplinary research field in heterodox economics. It applies theories and methods originally developed by physicists to problems in economics, usually those including uncertainty or stochastic processes and nonlinear dynamics. Some of its application to the study of financial markets has also been termed statistical finance referring to its roots in statistical physics. Econophysics is closely related to social physics.
==History== Physicists' interest in the economics is not new. Daniel Bernoulli, as an example, was the originator of utility-based preferences. Likewise, Jan Tinbergen, who won the first Nobel Memorial Prize in Economic Sciences in 1969 for having developed and applied dynamic models for the analysis of economic processes, studied physics with Paul Ehrenfest at Leiden University. Tinbergen classified some economic statistics as instruments used to achieve other statistics set as targets, a concept used by modern central banks when the use interest rates to control inflation. Tinbergen developed the gravity model of international trade that has become the workhorse of international economics. One of the founders of neoclassical economic theory, former Yale University Professor of Economics Irving Fisher, was originally trained under the renowned Yale physicist, Josiah Willard Gibbs.
Discovered by embedding cosine similarity (sentence-transformers MiniLM, 384-dim).