The history of economic thought witnessed several prominent economists who took seriously models and concepts in physics for the elucidation and prediction of economic phenomena. Econophysics is an emerging discipline at the intersection of heterodox economics and the physics of complex systems, with practitioners typically engaged in two overlapping but distinct methodological programs. The first is to export mathematical methods used in physics for the purposes of studying economic phenomena. The second is to export mechanisms in physics into economics. (...) A conclusion is drawn that physics transfer is often justified at the level of mathematical transfer but unjustified at the level of mechanistic transfer. (shrink)

The application of statistical methods and models both in the natural and social sciences is nowadays a trivial fact which nobody would deny. Bold analogies even suggest the application of the same statistical models to fields as different as statistical mechanics and economics, among them the case of the young and controversial discipline of Econophysics . Less trivial, however, is the answer to the philosophical question, which has been raised ever since the possibility of “commuting” statistical thinking and models (...) between natural and social sciences emerged: whether such a methodological kinship would imply some kind of more profound unity of the natural and the social domain. Starting with Adolphe Quetelet (1796-1874) and ending with the Vienna Circle (from the late 1920s until the 1940s), this paper offers a brief historical and philosophical reconstruction of some important stages in the development of statistics as “commuting” between the natural and the social sciences. This reconstruction is meant to highlight (with respect to the authors under consideration): (1) the existence of a significant correlation between the readiness to “transfer” statistical thinking from natural to social sciences and vice versa, on the one hand, and the standpoints on the issue of the unity/disunity of science, on the other; (2) the historical roots and the fortunes of the analogy between statistical models of society and statistical models of gases. (shrink)

Unification of natural science and social science is a centuries-old, unmitigated debate. Natural science has a chronological advantage over social science because the latter took time to include many social phenomena in its fold. History of science witnessed quite a number of efforts by social scientists to fit this discipline in a rational if not mathematical framework. On the other hand a tendency among some physicists has been observed especially since the last century to recast a number of social phenomena (...) in the mould of events taking place in physical world and governed by well-known systems and equations of physics. It necessitated the introduction of social physics as a new inter-disciplinary subject. Obviously this attempt is aimed at explaining hitherto unsolved or highly debated issues of social science. Physicists are showing special interest on problems on economics, ranging from some topics of normative economics to the movement of prices of derivatives. Statistics has been widely used in these attempts and at least two sub-disciplines of the subject, namely, stochastic process and time series analysis deserve special mention. All these research activities gave birth to another inter-disciplinary subject named as econophysics. Interestingly, global financial crisis of 2007–08 has revived the need of determination of prices of derivatives in a more accurate manner. This article adumbrates a sketch of the theoretical synthesis between physics and economics and the role played by statistics in this process. (shrink)

The paper discusses the possibility of constructing economic models using the methodology of model construction in classical mechanics. At the same time, unlike the "econophysical" approach, the properties of economic models are derived without involvement of any equivalent physical properties, but with account of the types of symmetry existing in the economic system. It has been shown that at this approach practically all known mechanical variables have their "economic twins". The variational principle is formulated on the basis of formal mathematical (...) construction without involving the subjective factor common to the majority of models in economics. The dynamics of interaction of two companies has been studies in details, on the basis of which we can proceed to modeling of more complex and realistic economic systems. Prediction of the possibility of constructing economic theory on the basis of primary principles analogously to physics has been made. (shrink)