Starting from inhomogeneous time scaling and linear decorrelation between successive price returns, Baldovin and Stella recently devised a model describing the time evolution of a financial index. We first make it fully explicit by using Student distributions instead of power law-truncated Levy...

We show how to apply the usual renormalization group prescription to some statistical mechanical systems that can be described in terms of a polymer model.

In this paper, a mode of using the Dynamic Renormalization Group (DRG) method is suggested in order to cope with inconsistent results obtained when applying it to a continuous family of one-dimensional nonlocal models. The key observation is that the correct fixed-point dynamical system has to...