Toward a new modeling of international economics: An attempt to reformulate an international trade model based on real option theory

Yasunori Fujita

doi:10.1016/j.physa.2007.04.041

Toward a new modeling of international economics: An attempt to reformulate an international trade model based on real option theory

Yasunori Fujita

Faculty of Economics

Research output: Contribution to journal › Article › peer-review

7 Citations (Scopus)

Abstract

Reformulation of economics by physics has been carried out intensively to reveal many features of the asset market, which were missed in the classical economic theories. The present paper attempts to shed new light on this field. That is, this paper aims at reformulating the international trade model by making use of the real option theory. Based on such a stochastic dynamic model, we examine how the fluctuation of the foreign exchange rate makes effect on the welfare of the exporting country.

Original language	English
Pages (from-to)	507-512
Number of pages	6
Journal	Physica A: Statistical Mechanics and its Applications
Volume	383
Issue number	2
DOIs	https://doi.org/10.1016/j.physa.2007.04.041
Publication status	Published - 2007 Sept 15

Keywords

Econophysics
International trade model
Real option theory
Small Country
Stochastic fluctuation

ASJC Scopus subject areas

Statistics and Probability
Condensed Matter Physics

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10.1016/j.physa.2007.04.041

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KW - Small Country

KW - Stochastic fluctuation

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Toward a new modeling of international economics: An attempt to reformulate an international trade model based on real option theory

Abstract

Keywords

ASJC Scopus subject areas

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