Tight-Binding Approach: A Quantum Mechanical Tool to Study Economic Time Series

• Authors: H. Cruz
• Languages of publication: EN

Abstracts

EN

We study the localization properties of the 1D tight-binding equation, where the on-site potential is aperiodic or pseudorandom. The on-site potential values are derived from economic time series databases. We carry out numerical work involving direct diagonalization to study localization properties of the system. In our model, eigenstates at the band center are all extended whereas the band-edge states are all localized. This diagonalization scheme is applied to different segments of the time series. The Lyapunov exponent behaves at E=0 as γ(E)~|E|^{β}. The results lead us to conclude that this mathematical tool could be used as a moving indicator to study economic charts.

Keywords

EN

72.15.Lh; 72.15.Rn; 89.65.Gh

Discipline

• 89.65.Gh: Economics; econophysics, financial markets, business and management(for economic issues regarding production and use of renewable energy, see 88.05.Lg)
• 72.15.Lh: Relaxation times and mean free paths
• 72.15.Rn: Localization effects (Anderson or weak localization)

• Publisher: Institute of Physics, Polish Academy of Sciences
• Journal: Acta Physica Polonica A
• Year: 2018
• Volume: 133
• Issue: 6
• Pages: 1347-1350

Dates

published

2018-06

Contributors

author

H. Cruz

• Departamento de Fisica, Universidad de La Laguna, Avda. Astrofisico Francisco Sanchez, s/n, 38204 La Laguna, Tenerife, Spain

Identifiers

DOI

10.12693/APhysPolA.133.1347