Economic time series usually exhibit complex behavior such as nonlinearity, fractal long-memory, and non-stationarity. Recently, considerable efforts have been made to detect chaos and fractal long-memory in finance. While evidence supporting fractal scaling in finance has been accumulating, it...

Recently, the concept of exponential sensitivity to initial conditions (ESIC) of deterministic chaos is generalized to power-law sensitivity to initial conditions (PSIC). We describe a general computational procedure to examine PSIC from a time series. Study of noise-free and noisy logistic and...

The 2008 global financial crisis has revived great interest in early warning system (EWS) models for reducing the risks of future crises. Existing EWS models employ aggregated variables that cannot examine the nonlinear dynamics of participating players on scales smaller than a country in...