In this paper the complex-valued bes
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t linear unbiased estimator of an unknown
constant mean of white noise was derived the ordinary least-squares estimator
of an unknown constant mean of random field (arithmetic mean) charged by an
imaginary error.
Understanding how spatial configurations of economic activity emerge is
important when formulating spatial planning and economic policy. A simple model
was proposed by Simon, who assumed that firms grow at a rate proportional to
their size, and that new divisions of firms with certain probabilities relocate
to other firms or to new centres of economic activity. Simon's model produces
realistic results in the sense that the sizes of economic centres follow a Zipf
distribution, which is also observed in reality. It lacks realism in the sense
that mechanisms such as cluster formation, congestion (defined as an overly
high density of the same activities) and dependence on the spatial distribution
of external parties (clients, labour markets) are ignored.
<br />The present paper proposed an extension of the Simon model that includes both
centripetal and centrifugal forces. Centripetal forces are included in the
sense that firm divisions are more likely to settle in locations that offer a
higher accessibility to other firms. Centrifugal forces are represented by an
aversion of a too high density of activities in the potential location. The
model is implemented as an agent-based simulation model in a simplified spatial
setting. By running both the Simon model and the extended model, comparisons
are made with respect to their effects on spatial configurations. To this end a
series of metrics are used, including the rank-size distribution and indices of
the degree of clustering and concentration.
This Chapter is written for the Festschrift celebrating the 70th birthday of
the distinguished economist Duncan Foley from the New School for Social
Research in New York. This Chapter reviews applications of statistical physics
methods, such as the principle of entropy maximization, to the probability
distributions of money, income, and global energy consumption per capita. The
exponential probability distribution of wages, predicted by the statistical
equilibrium theory of a labor market developed by Foley in 1996, is supported
by empirical data on income distribution in the USA for the majority (about
97%) of population. In addition, the upper tail of income distribution (about
3% of population) follows a power law and expands dramatically during financial
bubbles, which results in a significant increase of the overall income
inequality. A mathematical analysis of the empirical data clearly demonstrates
the two-class structure of a society, as pointed out Karl Marx and recently
highlighted by the Occupy Movement. Empirical data for the energy consumption
per capita around the world are close to an exponential distribution, which can
be also explained by the entropy maximization principle.
We investigate the structure of the profit landscape obtained from the most
basic, fluctuation based, trading strategy applied for the daily stock price
data. The strategy is parameterized
9c5
by only two variables, p and q. Stocks are
sold and bought if the log return is bigger than p and less than -q,
respectively. Repetition of this simple strategy for a long time gives the
profit defined in the underlying two-dimensional parameter space of p and q. It
is revealed that the local maxima in the profit landscape are spread in the
form of a fractal structure. The fractal structure implies that successful
strategies are not localized to any region of the profit landscape and are
neither spaced evenly throughout the profit landscape, which makes the
optimization notoriously hard and hypersensitive for partial or limited
information. The concrete implication of this property is demonstrated by
showing that optimization of one stock for future values or other stocks
renders worse profit than a strategy that ignores fluctuations, i.e., a
long-term buy-and-hold strategy.
We introduce a new threshold model of social networks, in which the nodes
influenced by their neighbours can adopt one out of several alternatives. We
characterize social networks for which adoption of a product by the whole
network is possible (respectively necessary) and the ones for which a unique
outcome is guaranteed. These characterizations directly yield polynomial time
algorithms that allow us to determine whether a given social network satisfies
one of the above properties.
<br />We also study algorithmic questions for networks without unique outcomes. We
show that the problem of determining whether a final network exists in which
all nodes adopted some product is NP-complete. In turn, the problems of
determining whether a given node adopts some (respectively, a given) product in
some (respectively, all) network(s) are either co-NP complete or can be solved
in polynomial time.
<br />Further, we show that the problem of computing the minimum possible spread of
a product is NP-hard to approximate with an approximation ratio better than
$\Omega(n)$, in contrast to the maximum spread, which is efficiently
computable. Finally, we clarify that some of the above problems can be solved
in polynomial time when there are only two products.