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Generalized Thermostatistical Description of Intermittency and Non-extensivity in Turbulence and Financial Markets

2000/10/26 by F. M. Ramos, Fernando M. Ramos, C. Rodrigues Neto +6
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #Condensed Matter (cond-mat) #FOS: Physical sciences #Financial Risk and Volatility Modeling #Statistical Mechanics and Entropy #cond-mat

paper · pdf · doi:10.48550/arxiv.cond-mat/0010435

11 pages, 3 figures, 1 table

arxiv created 2000/10/26 · openalex publication_date 2000/10/26 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We describe a simple and accurate framework for modeling the statistical behavior of both fully developed turbulence and short-term dynamics of financial markets based on the formalism of Tsallis' generalized non-extensive thermostatistics. Within this framework, we show that intermittency and non-extensivity are naturally linked by the entropic parameter q. Our results, concerning both probability density functions and structure functions exponents are in very good agreement with experimental data.

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