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On the theory of firm in nonlinear dynamic financial and economic systems

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  • Dimitri O. Ledenyov
  • Viktor O. Ledenyov

Abstract

The new business paradigms originate a strong necessity to re-think the theory of the firm with the aim to get a better understanding on the organizational and functional principles of the firm, operating in the investment economies in the prosperous societies. In this connection, we make the innovative research to advance our scientific knowledge on the theory of firm in the conditions of the nonlinear dynamic financial and economic systems. We propose that the nonlinearities have to be taken to the consideration and the nonlinear differential equation have to be used to model the firm in the modern theories of the firm in the nonlinear dynamic financial and economic systems. We apply the econophysical approach with the dynamic regimes modeling on the bifurcation diagram as in the dynamic chaos theory with the purpose to accurately characterize the nonlinearities in the economic theory of the firm. We introduce the Ledenyov firm stability theorem, based on the Lyapunov stability criteria, to precisely characterize the stability of the firm in the nonlinear dynamic financial and economic systems in the time of globalization.

Suggested Citation

  • Dimitri O. Ledenyov & Viktor O. Ledenyov, 2013. "On the theory of firm in nonlinear dynamic financial and economic systems," Papers 1302.6721, arXiv.org, revised Mar 2013.
    • Handle: RePEc:arx:papers:1302.6721
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    References listed on IDEAS

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    3. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2012. "On the Risk Management with Application of Econophysics Analysis in Central Banks and Financial Institutions," Papers 1211.4108, arXiv.org.
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    7. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2013. "On the optimal allocation of assets in investment portfolio with application of modern portfolio and nonlinear dynamic chaos theories in investment, commercial and central banks," Papers 1301.4881, arXiv.org, revised Feb 2013.
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    12. Viktor O. Ledenyov & Dimitri O. Ledenyov, 2012. "Shaping the international financial system in century of globalization," Papers 1206.2022, arXiv.org.
    13. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2013. "On the accurate characterization of business cycles in nonlinear dynamic financial and economic systems," Papers 1304.4807, arXiv.org.
    14. Ledenyov, Viktor O. & Ledenyov, Dimitri O., 2018. "Business Cycles in Economics," MPRA Paper 84959, University Library of Munich, Germany.
    15. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2012. "On the new central bank strategy toward monetary and financial instabilities management in finances: Econophysical analysis of nonlinear dynamical financial systems," Papers 1211.1897, arXiv.org.
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    Cited by:

    1. Diby Francois Kassi & Yao Li & Yobouet Thierry Gnangoin & Morié Guy-Roland N’Drin & Franck Edouard Gnahe & Akadje Jean Roland Edjoukou, 2023. "Investigating the Finance-Energy-Growth Trilogy in Sub-Saharan Africa: Evidence From the NARDL Framework," SAGE Open, , vol. 13(1), pages 21582440221, January.
    2. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2013. "Some thoughts on accurate characterization of stock market indexes trends in conditions of nonlinear capital flows during electronic trading at stock exchanges in global capital markets," MPRA Paper 49921, University Library of Munich, Germany.
    3. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2013. "On the accurate characterization of business cycles in nonlinear dynamic financial and economic systems," Papers 1304.4807, arXiv.org.
    4. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2013. "On the Stratonovich – Kalman - Bucy filtering algorithm application for accurate characterization of financial time series with use of state-space model by central banks," MPRA Paper 50235, University Library of Munich, Germany.
    5. Ledenyov, Dimitri O. & Ledenyov, Viktor O., 2015. "Wave function method to forecast foreign currencies exchange rates at ultra high frequency electronic trading in foreign currencies exchange markets," MPRA Paper 67470, University Library of Munich, Germany.
    6. Dimitri O. Ledenyov & Viktor O. Ledenyov, 2013. "To the problem of turbulence in quantitative easing transmission channels and transactions network channels at quantitative easing policy implementation by central banks," Papers 1305.5656, arXiv.org, revised May 2013.

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