Econophysics studies in Estonia

Abstract

The term “econophysics”, proposed in 1995 in Kolkata by E. H. Stanley, celebrates 15 years; however, the studies of economic systems using the tools of statistical physics initiated much earlier. Indeed, V. Pareto formulated his famous law of income distribution already in 1897 [1], and only three years later, L. Bachelier put forward the random walk model as the fundamental model for financial time-series [2]. Further, E. Majorana pointed out that statistical mechanics is a tool that can be applied also in social sciences [3]. In 1963 B. Mandelbrot found that the time-series of cotton price undergoes large fluctuations [4]. The studies of econophysics have developed at an ever accelerating rate since 80’s, particularly fast after the adoption of the very term, until drawing the attention of Estonian physicists at the beginning of the new century. The present paper is aimed to provide a short overview of the econophysical research in Estonia, which thus far has resulted in more than 15 research papers.