Geometrization of Econophysics : An Alternative Approach for Measuring Elements of Risk Management of an Economic System

The relationship between micro-structure and macro-structure of complex systems using information geometry has been dealt by several authors. From this perspective, we are going to apply it as a geometrical structure connecting both microeconomics and macroeconomics . The results lead us to introduc...

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Bibliographic Details
Published inIDEAS Working Paper Series from RePEc
Main Author Kahil, M E
Format Paper
LanguageEnglish
Published St. Louis Federal Reserve Bank of St. Louis 01.01.2013
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Summary:The relationship between micro-structure and macro-structure of complex systems using information geometry has been dealt by several authors. From this perspective, we are going to apply it as a geometrical structure connecting both microeconomics and macroeconomics . The results lead us to introduce new modified quantities into both micro-macro economics that enable us to describe the link between them. The importance of such a scheme is to find out -with some accuracy- a new method can be introduced for examining the stability of an economic system. This type of requirement is expressed by examining the stability of the equations of path deviations for some economic systems as described in a statistical manifold. Such a geometization scheme of economic systems is an important step toward identifying risk management factors and so contributes to the growing literature of econophysics.