ENGLISH

Quantum Field Theory for Economics and Finance

By Belal Ehsan Baaquie

Book information

Publisher
Cambridge University Press
Year
2018
ISBN
1108399681, 9781108399685
Language
english
Format
PDF
Filesize
14 MB (14979308 bytes)
Pages
xxvi+690\717
Time added
2019-01-05 13:55:14

Description

An introduction to how the mathematical tools from quantum field theory can be applied to economics and finance, providing a wide range of quantum mathematical techniques for designing financial instruments. The ideas of Lagrangians, Hamiltonians, state spaces, operators and Feynman path integrals are demonstrated to be the mathematical underpinning of quantum field theory, and which are employed to formulate a comprehensive mathematical theory of asset pricing as well as of interest rates, which are validated by empirical evidence. Numerical algorithms and simulations are applied to the study of asset pricing models as well as of nonlinear interest rates. A range of economic and financial topics are shown to have quantum mechanical formulations, including options, coupon bonds, nonlinear interest rates, risky bonds and the microeconomic action functional. This is an invaluable resource for experts in quantitative finance and in mathematics who have no specialist knowledge of quantum field theory.

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