Fibrations of financial events

David Carfì ()

MPRA Paper from University Library of Munich, Germany

Abstract: In this paper we shall prove that the plane of financial events, introduced and applied to financial problems by the author himself (see [2], [3] and [4]) can be considered as a fiber bundle in two different ways. The first one, the natural one, reveals itself to be isomorphic to the tangent bundle of the real line, when the last one is considered as a differentiable manifold in the natural way; the second one is a fibration induced by the status of compound interest capitalization at a given rate i in the interval ] − 1, → [. Moreover, in the paper we define on the first vector bundle an affine connection, also in this case induced by the compound interest capitalization at a given rate i. The final goal of this paper is the awareness that all the effects determined by compound interest capitalization are nothing but the consequences of the fact that the space of financial events is a fibration endowed with a particular affine connection, so they are consequences of purely geometric properties, at last, depending upon the curvature determined by the connection upon the fibration. A natural preorder upon the set of fibers of the second fibration is considered. Some remarks about the applicability to economics and finance of the theories presented in the paper and about the possible developments are given in the directions followed in papers [1], [5], [6], [7], [8] of the author himself.

Keywords: Financial event; compound interest; capital evolution; accumulation function; force of interest; fiber bundle; vector bundle; affine connection; Christoffel bilinear form (search for similar items in EconPapers)
JEL-codes: D1 D14 E6 G21 (search for similar items in EconPapers)
Date: 2009
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Proceedings of the International Geometry Center - Proceedings of the International Conference “Geometry in Odessa 2009” - ISSN 2072-9812 3.vol. 2(2009): pp. 7-18

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/31307/1/MPRA_paper_31307.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:31307

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().