The Signal, Entropic Finance, and the Digital Economy PDF Download

Author: Edgar Parker
Publisher:
ISBN: 9781794393103
Category :
Languages : en
Pages : 139

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Book Description
The following work identifies a new source of quantifiable risk in financial applications. Traditional economic and financial theories tend to ignore the limits on information communication and computation with notable exceptions such as Sims(2010). This is in spite of the fact that the science of such limits is well understood. Information and information processing have been treated qualitatively as either perfect or imperfect with little effort to incorporate them in a precise and practical way. Over the years this omission has become even more egregious given the data driven and digitally dominated world in which the vast majority of financial activity takes place. In addition to building new theoretical foundations, practical applications of the theory to problems in finance are suggested in this work. In the first chapter the concept of the economy's information processing efficiency is intuitively introduced. The theory is expanded in Chapter 2 which explores the relationships between the arrival and processing rates of information at financial markets. This analysis is used to demonstrate mathematically how financial flash crashes can occur without large changes in the information arrival process. In chapter 3 the economy's information processing efficiency (R/C) is theoretically and empirically derived from a reformulation of the yield curve. The theory is also intuitively extended to explain in a new way the large-scale declines in the markets typically seen at the end of business cycles. The full evolution of the business cycle is described from the perspective of this new theory and measure in Chapter 4. The new measure is used in Chapter 5 to improve portfolio management over business cycles in conjunction with more traditional methods. The fractal structure of R/C is explored mathematically and explained metaphorically in Chapter 6. In the last chapter the theory elucidates a previously unknown and important connection between the disparate branches of finance and opens many new vistas for future research and real-world applications.

Author: Stefan Brunnhuber
Publisher: Springer Nature
ISBN: 3030648265
Category : Development economics
Languages : en
Pages : 240

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Book Description
The monetary system is the indispensable missing link in the debate of sustainability, and whether the current financial system can handle these evolved needs. To date, the UN Sustainable Development Goals (SDGs) primarily have been financed either through the private sector, through conventional public sector taxes and fees, or through philanthropic commitment. Assuming a need of 4 to 5 trillion dollars annually in the 10 to 15 years left to finance our future, these conventional sources of finance are insufficient in terms of both the scale and speed of funding required to finance our future. Furthermore, the inherent instability of our financial system forces the world community to focus first and foremost on repairing and stabilizing the existing system. The development of cryptocurrencies using distributed ledger technologies (mainly blockchain) has prompted leading central banks to study the potential application of this approach to independently create purchasing power. In this vein, this book offers a new approach, namely introducing a parallel electronic currency specifically designed to finance global common goods and provide the resources necessary to achieve the SDGs. Furthermore, this mechanism would have a stabilizing effect on the existing monetary system. The book argues that one way this could be achieved is by giving central banks a modified monetary mandate to inject new liquidity into the system using a top-down approach. Alternatively, liquidity could come from corporate or communal initiatives with crypto- or communal currencies in a bottom-up approach. The author maintains that by issuing a blockchain-enabled parallel electronic currency earmarked for SDG-related projects and using other channels for monetary flow rather than the conventional ones, the future could be financed in a different manner. In the long run, abandoning our current monetary monoculture and introducing a monetary ecosystem would stabilize international financial markets, increase monetary regulatory efforts, reduce negative externalities, create a social Pareto optimum and stabilize democracies. This book presents, in the same spirit as Fritjof Capra's The Tao of Physics, a Tao of finance--an outside-of-the-box approach to financing global common goods.

Author: Jason Andress
Publisher: Elsevier
ISBN: 0124166334
Category : Computers
Languages : en
Pages : 325

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Book Description
Cyber Warfare, Second Edition, takes a comprehensive look at how and why digital warfare is waged. The book explores the participants, battlefields, and the tools and techniques used in today's digital conflicts. The concepts discussed gives students of information security a better idea of how cyber conflicts are carried out now, how they will change in the future, and how to detect and defend against espionage, hacktivism, insider threats and non-state actors such as organized criminals and terrorists. This book provides concrete examples and real-world guidance on how to identify and defend a network against malicious attacks. It probes relevant technical and factual information from an insider's point of view, as well as the ethics, laws and consequences of cyber war and how computer criminal law may change as a result. Logical, physical, and psychological weapons used in cyber warfare are discussed. This text will appeal to information security practitioners, network security administrators, computer system administrators, and security analysts. - Provides concrete examples and real-world guidance on how to identify and defend your network against malicious attacks - Dives deeply into relevant technical and factual information from an insider's point of view - Details the ethics, laws and consequences of cyber war and how computer criminal law may change as a result

Author: Thomas M. Cover
Publisher: John Wiley & Sons
ISBN: 1118585771
Category : Computers
Languages : en
Pages : 788

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Book Description
The latest edition of this classic is updated with new problem sets and material The Second Edition of this fundamental textbook maintains the book's tradition of clear, thought-provoking instruction. Readers are provided once again with an instructive mix of mathematics, physics, statistics, and information theory. All the essential topics in information theory are covered in detail, including entropy, data compression, channel capacity, rate distortion, network information theory, and hypothesis testing. The authors provide readers with a solid understanding of the underlying theory and applications. Problem sets and a telegraphic summary at the end of each chapter further assist readers. The historical notes that follow each chapter recap the main points. The Second Edition features: * Chapters reorganized to improve teaching * 200 new problems * New material on source coding, portfolio theory, and feedback capacity * Updated references Now current and enhanced, the Second Edition of Elements of Information Theory remains the ideal textbook for upper-level undergraduate and graduate courses in electrical engineering, statistics, and telecommunications.

Author: Chia-Lin Chang
Publisher: MDPI
ISBN: 3039360949
Category : Business & Economics
Languages : en
Pages : 246

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Book Description
This book is a collection of high-impact papers accepted and presented at the 2019 Vietnam’s Business and Economics Research Conference (VBER2019) organised by Ho Chi Minh City Open University held on 18th–20th July 2019. The Special Issue is associated with a broad coverage of the contemporary issues in Business and Economics in Vietnam and other emerging markets reflecting a key theme of VBER2019: Vietnam’s Place in the Asia Pacific Region. A total of 14 papers were published from more than the 120 submissions to the VBER2019 Conference. Published papers had been undergone a rigorous reviewing process conducted by the Journal of Risk and Financial Management. The papers incorporated in this book address contemporary issues in business and economics from Vietnam and other emerging markets in the Asian region from various angles such as economics, finance, and statistics to management science. At the time of writing this note, some of the papers have attracted more than 1000 downloads in 3 months. In particular, a paper on “Foreign Direct Investment and Economic Growth from Developing Countries in the Short Run and Long Run” by Trang Thi-Huyen Dinh and her team has attracted almost 6000 downloads in 3 months. These statistics indicate that the papers published in this Special Issue have attracted the wide interest of readers. Among these 14 published papers, three main areas of important contemporary issues in Business and Economics in the Asian region can be identified. First, a block of papers deals with various important and fundamental issues in the emerging markets the Asian region, from exchange rate regime, financial inclusion, and financial development to energy consumption and environmental degradation. On the issue of CO2 emissions, energy consumption and economic growth in the ASEAN, Vo, Vo, and Le utilized various time series econometrics approaches. Key findings from this paper indicate that there are no long-run relationships among carbon dioxide (CO2) emissions, energy consumption, renewable energy, population growth, and economic growth in the Philippines and Thailand, but a relationship does exist in Indonesia, Myanmar, and Malaysia. Loo, in his paper on financial inclusion for the ASEAN, concluded that advancing internet capability and availability present investors an opportunity to offer financial technology or Fintech to meet the need for financial services in this digital era. Second, a challenge in quantitative studies for a single country, such as Vietnam, with limited data is generally noted. However, various empirical studies on Vietnam’s business and economics issues have been conducted. Nguyen, Quan, and Pham examined the cultural distance and entry mode of foreign direct investment in Vietnam. A key finding from their paper is that when there is a great cultural difference between Vietnam and their home country, foreign-invested firms prefer wholly owned subsidiaries over equity joint ventures. Within the Vietnamese market, Pham, Vo, Ho, and McAleer conducted a study on the issue of corporate financial distress. The authors conclude that the corporate financial distress prediction model, which includes accounting factors with macroeconomic indicators, performs much better than alternative models. In addition, the evidence confirms that the global financial crisis (GFC) had a damaging impact on each sector, with the Health & Education sector demonstrating the most impressive recovery post-GFC, and the utilities sector recording a dramatic increase in bankruptcies post-GFC. At another extreme of the spectrum, Van and Nguyen considered that competitive context, social influences, the understanding of managers about corporate social responsibility (CSR), and the internal environment of companies are the four drivers of CSR. The authors also argued that in the four drivers, competitive context has the strongest impact on adopting CSR. Third, last but not least, various papers focus on an important aspect of public finance. For an example, Pham, Pham, and Ly documented the effect of double taxation treaties on the bilateral trade of Vietnam with ASEAN member states, thereby making an extensive comparison with its EU partner countries. Their findings indicate the significant contributions of the tax treaties to Vietnam’s trade performance, not exclusively with ASEAN but also with EU partner countries. In addition, regarding public finance for Vietnam, Nguyen, Vo, Ho, and Vo investigated the contribution of fiscal decentralisation to economic growth across provinces in Vietnam. For the first time in Vietnam, the fiscal decentralisation index together its two subcomponents, including fiscal importance and fiscal autonomy, are developed. Findings from this paper indicate that while fiscal importance and an overall level of fiscal decentralisation have provided negative impact on provincial economic growth, fiscal autonomy has a positive impact on economic growth across provinces in Vietnam.

Author: Paul Anthony Samuelson
Publisher:
ISBN:
Category : Economics, Mathematical
Languages : en
Pages : 466

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Book Description

Author: Cheng Few Lee
Publisher: World Scientific
ISBN: 9811202400
Category : Business & Economics
Languages : en
Pages : 5053

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Book Description
This four-volume handbook covers important concepts and tools used in the fields of financial econometrics, mathematics, statistics, and machine learning. Econometric methods have been applied in asset pricing, corporate finance, international finance, options and futures, risk management, and in stress testing for financial institutions. This handbook discusses a variety of econometric methods, including single equation multiple regression, simultaneous equation regression, and panel data analysis, among others. It also covers statistical distributions, such as the binomial and log normal distributions, in light of their applications to portfolio theory and asset management in addition to their use in research regarding options and futures contracts.In both theory and methodology, we need to rely upon mathematics, which includes linear algebra, geometry, differential equations, Stochastic differential equation (Ito calculus), optimization, constrained optimization, and others. These forms of mathematics have been used to derive capital market line, security market line (capital asset pricing model), option pricing model, portfolio analysis, and others.In recent times, an increased importance has been given to computer technology in financial research. Different computer languages and programming techniques are important tools for empirical research in finance. Hence, simulation, machine learning, big data, and financial payments are explored in this handbook.Led by Distinguished Professor Cheng Few Lee from Rutgers University, this multi-volume work integrates theoretical, methodological, and practical issues based on his years of academic and industry experience.

Author: Roger Strand
Publisher:
ISBN: 9780429061028
Category : Business & Economics
Languages : en
Pages : 194

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Book Description
"The Circular Economy in Europe presents an overview and a critical discussion on how circularity is conceived, imagined and enacted in current EU policy-making. In 2013, the idea of a circular economy entered the stage of European policy-making in the efforts to reconcile environmental and economic policy objectives. In 2019 the European Commission declared in a press release that the Circular Economy Action Plan has been delivered. The level of circularity in the European economy, however, has remained the same. Bringing together perspectives from social sciences, environmental economics and policy analysis, The Circular Economy in Europe provides a critical analysis of policies and promises of the next panacea for growth and sustainability. The authors provide a theoretical and empirical basis to discuss how contemporary societies conceive their need to re-organise production and consumption and explores the messy assemblage of institutions, actors, waste streams, biophysical flows, policy objectives, scientific disciplines, values, expectations, promises and aspirations involved. This book is essential reading for all those interested in understanding how ideas about the circular economy emerged historically, how they gained traction and are used in policy processes, and what the practical challenges in implementing this policy are"--

Author: Herman E. Daly
Publisher: Island Press
ISBN: 1597269913
Category : Business & Economics
Languages : en
Pages : 541

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Book Description
In its first edition, this book helped to define the emerging field of ecological economics. This new edition surveys the field today. It incorporates all of the latest research findings and grounds economic inquiry in a more robust understanding of human needs and behavior. Humans and ecological systems, it argues, are inextricably bound together in complex and long-misunderstood ways. According to ecological economists, conventional economics does not reflect adequately the value of essential factors like clean air and water, species diversity, and social and generational equity. By excluding biophysical and social systems from their analyses, many conventional economists have overlooked problems of the increasing scale of human impacts and the inequitable distribution of resources. This introductory-level textbook is designed specifically to address this significant flaw in economic thought. The book describes a relatively new “transdiscipline” that incorporates insights from the biological, physical, and social sciences. It provides students with a foundation in traditional neoclassical economic thought, but places that foundation within an interdisciplinary framework that embraces the linkages among economic growth, environmental degradation, and social inequity. In doing so, it presents a revolutionary way of viewing the world. The second edition of Ecological Economics provides a clear, readable, and easy-to-understand overview of a field of study that continues to grow in importance. It remains the only stand-alone textbook that offers a complete explanation of theory and practice in the discipline.

Author: George Gilder
Publisher: Regnery Publishing
ISBN: 1621570274
Category : Political Science
Languages : en
Pages : 370

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Book Description
Ronald Reagan’s most-quoted living author—George Gilder—is back with an all-new paradigm-shifting theory of capitalism that will upturn conventional wisdom, just when our economy desperately needs a new direction. America’s struggling economy needs a better philosophy than the college student's lament: "I can't be out of money, I still have checks in my checkbook!" We’ve tried a government spending spree, and we’ve learned it doesn’t work. Now is the time to rededicate our country to the pursuit of free market capitalism, before we’re buried under a mound of debt and unfunded entitlements. But how do we navigate between government spending that's too big to sustain and financial institutions that are "too big to fail?" In Knowledge and Power, George Gilder proposes a bold new theory on how capitalism produces wealth and how our economy can regain its vitality and its growth. Gilder breaks away from the supply-side model of economics to present a new economic paradigm: the epic conflict between the knowledge of entrepreneurs on one side, and the blunt power of government on the other. The knowledge of entrepreneurs, and their freedom to share and use that knowledge, are the sparks that light up the economy and set its gears in motion. The power of government to regulate, stifle, manipulate, subsidize or suppress knowledge and ideas is the inertia that slows those gears down, or keeps them from turning at all. One of the twentieth century’s defining economic minds has returned with a new philosophy to carry us into the twenty-first. Knowledge and Power is a must-read for fiscal conservatives, business owners, CEOs, investors, and anyone interested in propelling America’s economy to future success.