Berlin 2018 – scientific programme

Parts | Days | Selection | Search | Updates | Downloads | Help

AGPhil: Arbeitsgruppe Philosophie der Physik

AGPhil 4: Reduction and Emergence in Econophysics (joint session AGPhil/SOE)

AGPhil 4.4: Invited Talk

Thursday, March 15, 2018, 17:15–18:00, H 2033

Stock market crashes as critical phenomena? Explanation, idealization, and universality in econophysics — •Patricia Palacios — Munich Center for Mathematical Philosophy, Munich, Germany

We study the Johansen-Ledoit-Sornette (JLS) model of financial market crashes (Johansen, Ledoit, and Sornette 2000) that treats market crashes as critical phase transitions.

On our view, the JLS model is a curious case from the perspective of the recent philosophy of science literature, as it is naturally construed as a 'minimal model' in the sense of Batterman and Rice (Batterman and Rice 2014) that nonetheless provides a reductive explanation and causal explanation of market crashes, in the sense of Woodward's interventionist account of causation (Woodward 2003).