"Which economic patterns exhibit phase transitions and power laws?"
Applies physics methods to economic systems — power laws, phase transitions, critical phenomena, and mean-field approximations. Responsible for the econophysics macro parameters. The key empirical validation of the FP+jump architecture: the inverse cubic law (alpha_tail ~ 3) confirms finite variance for continuous dynamics and infinite variance for crisis events.
Inverse cubic law (alpha_tail ~ 3.0): 40M+ data points, replicated across multiple markets (Gopikrishnan 1999, Gabaix 2003, methodology 5/5). This VALIDATES the FP+jump split: alpha_tail > 2 means finite variance for continuous dynamics, while alpha_war = 1.53 < 2 means infinite variance for crises.
lambda_labor ~ 0.57 from BLS/FRED data — resolves the OPEN blocking item and makes epsilon = (1-w)/(0.57*e) computable, yielding realistic ~44x per-capita income for top 2%.
α_pareto ~ 1.5 for wealth distribution (Vermeulen 2018, Klass 2006) — but creates an infinite variance problem in the diffusion tensor D_ee.
T_debt: short cycle Normal(7,3)yr, long cycle Normal(75,25)yr — Dalio 2018 / Reinhart-Rogoff calibration.
Provides Section A macro parameters: alpha_pareto=1.5, alpha_tail=3.0, m_crash=0.33, T_debt (7yr/75yr cycles), T_ineq~125yr (calibration observation). Provides 5 of 6 drift coefficients: alpha_w=0.1, gamma_f=0.05, lambda_labor=0.57, mu_0=0.1, w_0=1.0. The tempered Pareto proposal for D_ee (using Rosinski 2007 tempering) addresses the infinite variance problem.
See the full formula →C14-1 HIGH: logistic-vs-OU β_U adjudication awaits Bayesian Statistician PSIS-LOO (joint execution)
C22-2 LOW: Tandfonline 2024 logistic-vs-OU replication against UN-Habitat or Maddison before PSIS-LOO. Deadline Session 30.
C26-G LOW: σ_e ↔ D_ee mapping sign-off (Session 27)
C13-2 PARTIAL: Causal Status labels in §2 — A_4 CAUSAL-AT-IDENTITY label audit owed (joint with Neuroscientist + Evo-Psychologist)
Session 22. First NET-NEGATIVE parameter-budget session in formula history. C15-1 HIGH closed via Rosinski 2007 (Stoch. Proc. Appl. 117:677-707) tempered-stable theorem: η_pareto and α_pareto are structurally orthogonal in the Lévy-measure decomposition; no double-counting. T_ineq RETIRED to derived diagnostic (free count 42 → 41). Causal Status column added to §2 drift table (A_2 CAUSAL-AT-MICRO / CORRELATIONAL-AT-MACRO; A_3/A_5/A_7 CORRELATIONAL; A_4 CAUSAL-AT-IDENTITY). Logistic urbanization preferred (P=0.65) over OU (P=0.35) per Tandfonline 2024 RMSE evidence; final adjudication awaits Bayesian PSIS-LOO. LPPL crash SDs tightened. Dem 2028 first archetype firing executed: GATE_BLOCKED_NO_PREDICTION (legitimate protocol behavior). Confidence 5.85 → 6.10.
First econophysicist session. Defined all 5 Section A parameters and 5/6 drift coefficients — unblocked the primary numerical bottleneck. alpha_tail~3 validates FP+jump architecture. 8 Philosopher caveats; version downgraded from proposed 0.6.0 to 0.5.3. Infinite variance in D_ee diffusion tensor flagged as critical issue.