Abstract

At present, traditional macro-financial models such as random walk model and log-periodic power law model in academia cannot explain the stylized characteristics of financial markets. So, we propose a microscopic model that produces stylized characteristics of real financial markets. The model integrates the herding effect, the non-linear relationship of investors and the non-linear structure of the system very well. The research results show that the financial market model established in this paper can simulate most of the characteristics of the real financial market price time series relatively accurately. The model helps to understand the internal operating mechanism of the financial system and provides some basis and reference for the establishment of financial market forecasting models.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call