Thermoeconomics: Solving Stochastics Partial Differential Equations- From Mechanical Engineering to Financial Engineering

Abstract

The research explored and examined six diverse typical mechanical engineering methodologies such as CFD, finite element analysis, and design optimization, and their application to solve problems in econophysics using practical problems solved with enough detail to serve as an introduction to the theory of mechanical engineering techniques, and their correspondence analog concept in econophysics. The usefulness of the mechanical engineering methodologies utilized in another field of knowledge was demonstrated in sufficient substance to serve as an introductory basis for further studies for the interested researcher with a background in civil or mechanical engineering. This research could also serve as the foundation for an introductory course in econophysics at the fourth or fifth-year level in engineering in those engineering specialties. The objectives were to develop a deep comprehension of several of the econophysics models already being developed, prepare a basic introduction of numerical examples to complement that research and compare the results of such models against actual data results to evaluate their effectiveness. These objectives were met. Key Terms ⎯ Econophysics Financial Engineering, Stochastics Partial Differential Equations, Thermoeconomics.