Economic System Research by Using Statistical Physics

Abstract

Physicists’ research in finance and economics began in the 1990s and has been applied to the challenges of this field ever since. One of the challenging issues of econophysics is to answer the questions: Can we solve the economic challenges? How does the statistical physics method contribute with the problem in the asset pricing model? How does the economics network structure and the global financial crisis co-evolve? To answer that questions, several theoretical and empirical studies have already been conducted on the anomalous phenomena of the economy and financial markets. Moreover, at the forefront of recent financial crisis research, extensive and rapid development has been achieved by combining text information and machine learning methodologies. Here, we discuss financial time series analysis and outline the future prospects for econophysics research.