Analysis of Economic Mechanism Using Distribution Functions
*1National Institute of Informatics, 2-1-2 Hitotsubashi, Chiyoda-ku, Tokyo
*2Graduate University for Advanced Studies (Sokendai), 2-1-2 Hitotsubashi, Chiyoda-ku, Tokyo
One of the characteristic analytical methods in Econophysics is observation of distribution function of an economic phenomenon. By comparing the distribution function with a normal distribution, we can find the correlation structure hiding in the phenomenon through Lindeberg’s central limit theorem and the generalized (stable distribution) central limit theorem. We introduce some examples of research which used the distribution function for the phenomena of financial markets, real estate markets, an online product market, and a retail market.
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