In spite of elaborate descriptive and correlational studies, the most ubiquitous phenomenon in economics, namely inflation, has remained unexplained in terms of its mathematical origins. Keynes had attempted to relate inflation to a mechanism of "sticky wages and prices". Hitherto, such theories...

In recent years, understanding the structure and function of complex networks has become the foundation for explaining many different real- world complex biological, technological and informal social phenomena. Techniques from statistical physics have been successfully applied to the analysis of...

The public economic literature of the past century is characterized by a traditional paradigm that ascribes little attention to the spatial dimension. However, contemporary globalization requires that researchers and economists expand their perspectives to consider space conceptualization. What...

We analyze the time series of overnight returns for the bund and btp futures exchanged at liffe (London). The overnight returns of both assets are mapped onto a one–dimensional symbolic–dynamics random walk: The “bond walk”. During the considered period (October 1991—January 1994) the...

Evidence on international capital flows suggests that foreign direct investment (FDI) is less volatile than other financial flows. To explain this finding, I model international capital flows under the assumptions of imperfect enforcement of financial contracts and inalienability of FDI....