Econophysics & Statistical Consulting
Scientific Consulting Services
EPCM™ — Econophysics-based Process & Complexity Methodology
Econophysics is an non-orthodox interdisplanary way of solving problems in economics. The conventional economic approaches are generally based upon static assumptions which does not include dynamic behavior. Econophysics is an interdisciplinary branch which is related with the study of the dynamical behavior of financial and economic markets. By using methods and theories from theoretical physics, statistical & stochastic physics, nonlinear dynamics and complex systems to develop models one can obtain distinguished results in understanding risk parameters and economical dynamics in various industries. An essential process for this is statistical and stochastic modelling that includes contrains imposed by markets, governance & regulatory rules and country policies.
The 5-Step EPCM™ Process Flow
Step 1 — System Scope & Boundaries- Define agents, interactions, and constraints
- Grounded in Complexity Science & Non-Equilibrium Dynamics
- Power laws, fat tails, scaling behavior
- Data-driven regularities
- Self-Organization & Network Models
- Feedback loops, contagion, phase transitions
- Stochastic Simulation & Stress Testing
- Identification of Tail Risks & Extreme Events
continuous feedback rather than a one-way cycle.
- Policy levers, controls, and buffers
- Governance as a feedback mechanism, not a final stop
