Role of Agent Based Financial Market Models in Global Product Development

2008 ◽  
Author(s):  
Mario E. Inchiosa ◽  
Bipin Chadha
Keyword(s):  
Product Development ◽  
Financial Markets ◽  
Firm Growth ◽  
Ad Hoc ◽  
Random Number Generator ◽  
Agent Based ◽  
Stock Traders ◽  
Heavy Tailed ◽  
Non Gaussian

This paper describes the need for understanding the role of financial markets in successful product development in the global context. Agent-based models distinguish themselves by their ability to generate many real world phenomena endogenously, rather than as a result of ad-hoc assumptions. We report on a model of global financial markets employing the following agents: countries, firms, stock traders, country banks, and a global bank. These agents interact with goods, credit, currency, and stock markets. The model endogenously generated quantitative and qualitative features of real economies, including skewed firm sizes, skewed country GNP’s, skewed stock trader portfolio values, and heavy-tailed non-Gaussian firm growth rate, exchange rate fluctuation, and stock return distributions. Multiple runs were performed with different random number generator seeds to investigate the stability or instability of the economies grown by the model. Both stable and unstable country economies were detected. The multiple runs also verified conclusions drawn from analyzing individual runs showing how small countries could be buffeted by fluctuations in larger countries. Such a model can be used by product development organizations to understand the impacts of their product development decisions in the context of dynamic and unpredictable financial markets.

scholarly journals Thermalization of Random Motion in Weakly Confining Potentials

2010 ◽  
Vol 17 (03) ◽  
pp. 287-296 ◽  
Author(s):  
Piotr Garbaczewski ◽  
Vladimir Stephanovich
Keyword(s):  
A Priori ◽  
Mean Value ◽  
Energy Scale ◽  
Random Motion ◽  
Diffusion Type ◽  
The Mean ◽  
Heavy Tailed ◽  
Non Gaussian ◽  
Force Potential

We show that in weakly confining conservative force fields, a subclass of diffusion-type (Smoluchowski) processes, admits a family of "heavy-tailed" non-Gaussian equilibrium probability density functions (pdfs), with none or a finite number of moments. These pdfs, in the standard Gibbs-Boltzmann form, can also be inferred directly from an extremum principle, set for Shannon entropy under a constraint that the mean value of the force potential has been a priori prescribed. That enforces the corresponding Lagrange multiplier to play the role of inverse temperature. Weak confining properties of the potentials are manifested in a thermodynamical peculiarity that thermal equilibria can be approached only in a bounded temperature interval 0 ≤ T < T max = 2ϵ0/kB, where ϵ0 sets an energy scale. For T ≥ T max no equilibrium pdf exists.

Peran Bank Syariah: Menuju Perekonomian Masyarakat Madani

2019 ◽  
Vol 1 (2) ◽  
pp. 131-144
Author(s):  
Dini Maulana Lestari ◽  
M Roif Muntaha ◽  
Immawan Azhar BA
Keyword(s):  
Financial Markets ◽  
Islamic Law ◽  
Financial Service ◽  
Islamic Banks ◽  
Free Society ◽  
The Public ◽  
Turn On ◽  
The People ◽  
Strategic Role

Islamic banks are present in the community as financial institutions whose activities are based on the principles of Islamic law for the benefit of the people. This study aims to determine the strategic role of Islamic Banks as financial service institutions, the importance of the existence of Islamic Banks and Islamic-based markets and financial instruments in them. In its development, Islamic banks have a role as institutions that turn on public funds, channel funds to the public, transfer assets, liquidity, reallocation of income and transactions. In the Indonesian economic system, the existence of Islamic Banks is important as an alternative solution to the problem of conflict between bank interest and usury. Islamic financial markets and instruments provide a free society of interest and follow a different set of principles. Distribution of profit/ loss according to evidence of participation in the management fund. The division of rental income in the form of musharaka.

Role of agile methodology for software product development

2018 ◽  
Vol 6 (5) ◽  
pp. 424-427
Author(s):  
Jyoti Kharade ◽  
◽  
◽  
◽  
◽  
...  
Keyword(s):  
Product Development ◽  
Agile Methodology ◽  
Software Product

Nonlinear Dynamics and Chaos: Application to Financial Markets in Pakistan

1994 ◽  
Vol 33 (4II) ◽  
pp. 1417-1429 ◽  
Author(s):  
Nasir M. Khiui
Keyword(s):  
Financial Markets ◽  
Chaotic Dynamics ◽  
Ad Hoc ◽  
Linear Models ◽  
Brain Research ◽  
Economic Data ◽  
Differential Equation Models ◽  
Short Run ◽  
The Business Cycle ◽  
Random Shocks

Recently there has been an increased interest in the theory of chaos by macroeconomists and fmancial economists. Originating in the natural sciences, applications of the theory have spread through various fields including brain research, optics, metereology, and economics. The attractiveness of chaotic dynamics is its ability to generate large movements which appear to be random, with greater frequency than linear models. Two of the most striking features of any macro-economic data are its random-like appearance and its seemingly cyclical character. Cycles in economic data have often been noticed, from short-run business cycles, to 50 years Kodratiev waves. There have been many attempts to explain them, e.g. Lucas (1975), who argues that random shocks combined with various lags can give rise to phenomena which have the appearance of cycles, and Samuelson (1939) who uses the familiar multiplier accelerator model. The advantage of using non-linear difference (or differential) equation models to explain the business cycle is that it does not have to rely on ad hoc unexplained exogenous random shocks.

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