Edgar Parker

Abstract: In the century and a half since Maxwell first conjured his “finite being” which Lord Kelvin subsequently dubbed a “daemon”, researchers have explored the connections between non-equilibrium thermodynamics, entropy, and information theory. In recent years various Thermodynamic Uncertainty Relations (TURs) have been derived to inform upon t...

A new interpretation of the evolution of the yield curve based on multiscale entropy is presented in this paper. Building upon prior research the full variety and sequence of yield curve shapes over the business cycle are described as part of a multiscale entropic lifecycle (MSELC). Unlike traditional methods this new perspective explains the spect...

Many econophysics applications have modeled financial systems as if they were pure physical systems devoid of human limitations and errors. On the other hand, traditional financial theory has ignored limits that physics would impose on human interactions, communications, and computational abilities. The entropic yield curve blends the physical and...

Many econophysics applications have modeled financial systems as if they were pure physical systems devoid of human limitations and errors. On the other hand, traditional financial theory has ignored limits that physics would impose on human interactions, communications, and computational abilities. The entropic yield curve blends the physical and...

After the 2008 financial collapse, the now popular measure of implied systemic risk called the absorption ratio was introduced. This statistic measures how closely the economy’s markets are coupled. The more closely financial markets are coupled the more susceptible they are to systemic collapse. A new alternative measure of financial market health...

An alternative derivation of the yield curve based on entropy or the loss of information as i is communicated through time is introduced. Given this focus on entropy growth in communicatio the Shannon entropy will be utilized. Additionally, Shannon entropy's close relationship to th Kullback-Leibler divergence is used to provide a more precise unde...

While a wide variety of hypotheses have been offered to explain the anomalous market phenomena known as a “Flash Crash”, there is as of yet no consensus among financial experts as to the sources of these sudden market collapses. In contrast to the behavior expected from standard financial theory, both the equity and bond markets have been thrown in...

All economic and financial activity involves the communication of information across space and time. Additionally, communicated and processed information is the only universal fundamental input to all economic and financial production and exchange. Well established laws from physics and information theory determine the evolution of entropy, the lim...

A multiple agent model is developed where traders must receive, process, and send communications to and from a distant market. This model highlights the importance that information theory’s communication constraints have on the level of price uncertainty each agent faces. The collective uncertainty of many such agents leads to the nontrivial struct...

A central concept of this paper is that information theory could help illuminate an important additional source of uncertainty in finance and economics. The communication constraints dictated by information theory have predictable results which fit well with the empirical realities and explain apparent anomalies seen in the markets. Furthermore the...

This article examines the history, structure, and evolution of the national venture capital industry. After providing that broad background, the authors focus on current development of venture capital in the Southeast and of states' promotion of such investment. This discussion includes a state-by-state analysis of local venture capital markets and...

Venture capital investment throughout the United States and in the Southeast in particular has grown dramatically in recent years. Pensions funds, bank holding companies, insurance companies, investment banks, and nonfinancial institutions all invest venture capital in pursuit of high returns and as a means of diversifying investment risks. However...

Florida, like the rest of the nation, has undergone many economic changes in recent decades, including the decline of the manufacturing base and the growth of international trade. In Florida tourism s growing importance has also figured significantly. In addition to changes at the state level, Florida's cities have become less similar over time. ;...