International Journal of Economics, Finance and Management Sciences
Volume 2, Issue 1, February 2014, Pages: 111-116
Received: Jan. 26, 2014;
Published: Feb. 28, 2014
Views 2586 Downloads 153
Yikui Qiu, School of Finance, Central University of Finance and Economics, Beijing, China
Financial system has a characteristic of dissipative structure theory. In the nonlinear motion process, financial system is extremely easy to produce energy dissipation, which would lead to the emergence of system instability. In this paper, the dissipative structure characteristic of financial system would be analyzed in the first, and the energy function of financial system would be given. Then the energy dissipation and the energy exchange in financial system would be studied. At last, the influence of energy dissipation to system stability would be given. Financial system instability is related to the total entropy and the impact resistance ability of system. We can control system stability by these two factors. The research is importance to the study of financial stability theory and the control of financial system stability.
The Impact of Energy Dissipation to the Stability in Financial System, International Journal of Economics, Finance and Management Sciences.
Vol. 2, No. 1,
2014, pp. 111-116.
George C. Philippatos, Gharles J. Wilson. (1972). Entropy, marker risk, and the selection of efficient portfolios, Applied Economics, Issu 4, pp. 209-220.
Maasoumi E., Theil H.(1979). The elect of the shape of the income distribution on two inequality measures, Economics Letters, Issu 4, pp. 289-291.
Chandra M. T., Singpurwalla N. D.(1981). Relationships between some notions which are common to reliability theory and economics, Mathematics of Operations Research, Issue 6, pp. 113-121.
Andreia Dionisio, Rui Menezes, Diana A M.(2005). Uncertainty analysis in financial markets: can entropy be a solution? pp. 8.
Xuguang Nan.(2005). The dynamic mechanism of financial fragility: financial entropy and institutional change, Journal of Chongqing Radio & TV University, China, Vol. 17 , Issue 2, pp. 42-44.
Lifa Hu.(2009). The dissipative structure of virtual economy system and the financial crisis in America, Modern economic research, China, Issue. 3, pp. 40-44.
Meng Xu. (2011). The study on financial crisis analyzed by dissipative structure theory, The economy of division, Issue. 3, pp. 42-44.
Xukai Huang. (2012). Financial fragility, financial innovation, financial risk and financial crisis -- Analysis financial instability based on the entropy theory, China securities and futures, Issue. 6, pp. 207-208.
I. Prigogine. (1980). The complexity evolution and the natural law, The problem of the philosophy of natural science, pp. 3.
C. Sarasola, F. J. Torrealdea, A. d’Anjou, A. Moujahid, M. Graňa. (2004). Energy balance in feedback synchronization of chaotic systems. Phys. Rev. E, Issue. 69: 011606.
C. Sarasola, A. d’Anjou, F. J. Torrealdea, A. Moujahid.(2005). Energy-like functions for some dissipative chaotic systems. Int. J. Bifurcation Chaos Appl. Sci. Eng., Issue. 15, pp. 2507.
W. K. H. Panofsky, M. Phillips. (1962). Classical electricity and magnetism (Addison-Wesley series in physics). MA: Addison-Wesley, Reading.