Many dynamical systems depend on parameters. One may expect that small variations of the parameters produce no significant changes in the orbits. As was shown in Chap. 3 for the Logistic Map, even in simple cases, there exist critical values such that, moving the parameters through them, the...

In this chapter, we introduce the concept of the embedding dimension, as the smallest topological dimension required to ensure that an object described by simpler (often scalar) time series can be embedded in a higher topological dimension.

FM -- Introduction -- Part I: Mathematical background -- Dynamical systems -- An example of nonlinear dynamical system: The Logistic Map -- Bifurcations -- From local bifurcations to global dynamics: Hopf systems from the applied perspective -- Chaos -- Embedding and mutual information -- Part...

This interdisciplinary book argues that the economy has an underlying non-linear structure and that business cycles are endogenous, which allows a greater explanatory power with respect to the traditional assumption that dynamics are stochastic and shocks are exogenous. The first part of this...

This article extends the previous research on the notion of a standardized call function and how to obtain an approximate model of the Black-Scholes formula via the hyperbolic tangent. Although the Black-Scholes approach is outdated and suffers from many limitations, it is still widely used to...

In this Chapter, we provide the definitions, notions and examples relevant for the analysis of the dynamical systems of interest to us in the remainder of this book. We start with with a description of dynamical systems and we provide a taxonomy. Then, we define continuous-time dynamical systems...

In this chapter, the Logistic Map is taken as the example demonstrating the generic stability properties of fixed points and limit cycles, in dependence of the strength of nonlinearity. To identify attracting periodic orbits, we use the Schwarz derivative. The chapter ends with an application of...

In this chapter, we first explain what we mean by a signal, and then we describe some characteristics such as energy, frequency, phase, power spectrum, etc. We show how to analyse it by the means of spectral analysis and Fourier transform. Moreover, as the Fourier transform does not provide any...

In this paper, we introduce the concept of standardized call function and we obtain a new approximating formula for the Black and Scholes call function through the hyperbolic tangent. Differently from other solutions proposed in the literature, this formula is invertible; hence, it is useful for...