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Models for Nonlinear Decisions Overview and Two Case Examples in Finance and Energy

Author

Listed:
  • Ionut PURICA

    (Institute for Economic Forecasting, Romanian Academy.)

  • Liviu Lucian ALBU

    (Institute for Economic Forecasting, Romanian Academy.)

  • Marioara IORDAN

    (Institute for Economic Forecasting, Romanian Academy.)

  • Sorin DINU

    (Institute for Economic Forecasting, Romanian Academy.)

Abstract

The latest years evolutions in the financial and economic world have once more proven that the models used to describe the behavior of given systems should be extended and the approach on which they are based should change from linear to nonlinear. A series of such models are described in the paper, with a synthesis of the main features of nonlinear behavior, and a case example is presented on how to describe in order to be able to predict the discontinuous decision associated with the financial crises and with the technological evolution of the energy systems. Suggestions are made on the need to control crises and not to eliminate them if one wants to better adapt to a nonlinear world dynamic and on the optimal scenarios for the penetration of fuel cell technologies for energy production.

Suggested Citation

  • Ionut PURICA & Liviu Lucian ALBU & Marioara IORDAN & Sorin DINU, 2020. "Models for Nonlinear Decisions Overview and Two Case Examples in Finance and Energy," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 194-201, July.
    • Handle: RePEc:rjr:romjef:v::y:2020:i:2:p:194-201
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    References listed on IDEAS

    as
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    3. Carmen M. Reinhart & Kenneth S. Rogoff, 2014. "This Time is Different: A Panoramic View of Eight Centuries of Financial Crises," Annals of Economics and Finance, Society for AEF, vol. 15(2), pages 215-268, November.
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    5. Ionut Purica, 2014. "Occupy the Financial Niche – Saturation and Crisis (discontinuous decisions)," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 2(3), pages 13-19, September.
    6. Charles G. Leathers & J. Patrick Raines, 2004. "The Schumpeterian role of financial innovations in the New Economy's business cycle," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 28(5), pages 667-681, September.
    7. Purica, Ionut, 2015. "Nonlinear Dynamics of Financial Crises," Elsevier Monographs, Elsevier, edition 1, number 9780128032756.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Nonlinear models; discontinuous decisions; financial crises; energy technologies;
    All these keywords.

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics

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