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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

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    Keywords

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    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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