It is easy to demonstrate that Sen's SWF satisfies Pareto criteria. This paper questions the philosophy of this concept and shows that it is possible to formulate a generalized SWF, which can be non-Paretian under special circumstances. This paper also demonstrates a method of decomposition of...

Composite models have received much attention in the recent actuarial literature to describe heavy-tailed insurance loss data. One of the models that presents a good performance to describe this kind of data is the composite Weibull-Pareto (CWL) distribution. On this note, this distribution is...

This paper analyses the performance of the graphs traditionally used to study size distributions: histograms, Zipf plots (double logarithmic graphs of rank compared to size) and plotted cumulative density functions. A lognormal distribution is fitted to urban data from three countries (the US,...

Composite models have received much attention in the recent actuarial literature to describe heavy-tailed insurance loss data. One of the models that presents a good performance to describe this kind of data is the composite Weibull–Pareto (CWL) distribution. On this note, this distribution is...

Economics

The natural sciences have established a general scaling law that relates metabolism and body size of animals. Recently this association - known as Kleiber's law - has received deep theoretical foundation by network theory and has been fruitfully applied to explain various biological phenomena,...

This chapter reviews recent research adopting methods from statistical physics in theoretical or empirical work in economics and finance. The bulk of what has recently become known as 'econophysics' in broader circles draws its motivation from observed scaling laws in financial markets and the...

Using a simple stochastic growth model, this paper demonstrates that the coefficient of variation of aggregate output or GDP does not necessarily go to zero even if the number of sectors or economic agents goes to infinity. This phenomenon known as non-self-averaging implies that even if the...

A large market economy has a huge number of degrees of freedom with weak microlevel coordination. The 'implicit microfoundations' approach assumes this property of micro-level interactions more strongly conditions macro-level outcomes compared to the precise details of individual choice...