In this chapter we discuss relations between information theory and statistical
mechanics. We show that the canonical and grand canonical distributions
can be obtained from Shannon’s principle of maximum uncertainty [1, 2, 3].
Moreover, the time evolution of the entropy of an isolated system and the H
theorem are discussed.
In recent years, energy prices have become increasingly more expensive and volatile.
This trend has added to auto ownership costs and uncertainty about future operating
expenses. Moreover, parking in many of the world’s largest cities is limited and costly
further adding to private vehicle expenditures. Many nations worldwide have adopted
carsharing (or short-term auto access) as a means to reduce personal transportation costs
and the negative impacts of widespread auto use including: congestion, inefficient land
use, energy consumption, and emissions.
Global GDP growth has lost steam in the course of 2012, and leading
indicators point to further weakness in the remainder of this year. Among the
largest non-EU advanced economies, Japan's post-disaster recovery is
pausing, while in the US growth appears to be gradually firming after a
protracted period of subdued performance. However, the uncertainty related
to the path of US fiscal policy over the coming months remains high. At the
same time, many emerging market economies have recently been moving
towards a more moderate rate of economic expansion, which in part reflects...
On July 15, 2008, in the wake of the failure of
Indymac Bank – one of the largest bank failures in
history – and a mounting cloud of uncertainty
enveloping the banking industry, the Federal
Deposit Insurance Corporation (“FDIC”) issued its
Final Covered Bond Policy Statement (“Final
Policy Statement”). In a move many view as an
effort by the FDIC to bolster the mortgage market
and provide banks with a new liquidity tool (and
funding alternative to the struggling securitization
market), the Final Policy Statement may open the
way to a U.S. market in covered bonds.
Our paper offers two contributions to the literature: First, we investigate RNDs for the
German stock market, which is the largest stock market in the euro area. Second, we evaluate
whether a comprehensive set of factors can explain the changes in the uncertainty about future
equity prices. Hence, we analyse which types of information affect the perceptions about
future stock market movements as contained in DAX option prices.