A Novel Method for Watching Economical Circulations

Visualization of Economical Data via Mathematica

Toshihiro Iwata

Kansai University

The ultimate goal for macro economists is to understand the behavior and rules in randomness, which can be seen in almost every economical data. Such randomness may correspond to a kind chaos in business cycles. In this presentation, we show our recent results about visualization of economical circulation, where Mathematica works effectively. At first, we show a result from a spectral analysis (Figure 1; it is based on a rather usual way). Then we show a 3D visualization of behavior of economical circulation (Figure 2), which is statistically obtained by a real evolution of a stock price. Here, we propose a novel way to choose three quantities—P’, P’’, and P’’’. We can quickly understand, from Figure 2, that the time evolution of the price is very complicated. On the other hand, the complicated evolution seems to be circulating in a limited finite box (it seems to have some rules). Our opinion is that such limited circulation and complexity are highly correlated. Finally, our visualization will be helpful not only for further research, but also as an educational tool for young people (e.g., high school students) to understand real dynamics in economics.

[presentation materials]