Physics – Data Analysis – Statistics and Probability
Scientific paper
2009-06-12
Physics
Data Analysis, Statistics and Probability
Presented at Medyfinol 2009
Scientific paper
The Theil index is much used in economy and finance; it looks like the Shannon entropy, but pertains to event values rather than to their probabilities. Any time series can be remapped through the Theil index. Correlation coefficients can be evaluated between the new time series, thereby allowing to study their mutual statistical distance, - to be contrasted to the usual correlation distance measure for the primary time series. As an example this entropy-like correlation distance method (ECDM) is applied to the Gross Domestic Product of 20 rich countries in order to test some economy globalization process. Hierarchical distances allow to construct (i) a linear network, (ii) a Locally Minimal Spanning Tree. The role of time averaging in finite size windows is illustrated and discussed. It is also shown that the mean distance between the most developed countries, was decreasing since 1960 till 2000, - which we consider to be a proof of globalization of the economy for these countries.
Ausloos Marcel
Miskiewicz Janusz
No associations
LandOfFree
Entropy correlation distance method applied to study correlations between the Gross Domestic Product of rich countries does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.
If you have personal experience with Entropy correlation distance method applied to study correlations between the Gross Domestic Product of rich countries, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Entropy correlation distance method applied to study correlations between the Gross Domestic Product of rich countries will most certainly appreciate the feedback.
Profile ID: LFWR-SCP-O-138620