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Accessible, concise, and interactive, this book introduces the mathematical methods that are indispensable in economics and finance. Fully updated to be as student friendly as possible, this edition contains extensive problems, worked examples and exercises (with full solutions at the end of the book). Two brand new chapters cover coupled systems of recurrence/differential equations, and matrix diagonalisation. All topics are motivated by problems from economics and finance, demonstrating to students how they can apply the mathematical techniques covered. For undergraduate students of economics, mathematics, or both, this book will be welcomed for its clarity and breadth and the many opportunities it provides for readers to practise and test their understanding.
There are several factors that can cause the excessive accumulation of biofluid in human tissue, such as pregnancy, local traumas, allergic responses or the use of certain therapeutic medications. This study aims to further investigate the shear-dependent peristaltic flow of Phan–Thien–Tanner (PTT) fluid within a planar channel by incorporating the phenomenon of electro-osmosis. This research is driven by the potential biomedical applications of this knowledge. The non-Newtonian fluid features of the PTT fluid model are considered as physiological fluid in a symmetric planar channel. This study is significant, as it demonstrates that the chyme in the small intestine can be modelled as a PTT fluid. The governing equations for the flow of the ionic liquid, thermal radiation and heat transfer, along with the Poisson–Boltzmann equation within the electrical double layer, are discussed. The long-wavelength ($\delta \ll 1$) and low-Reynolds-number approximations ($Re \to 0$) are used to simplify the simultaneous equations. The solutions analyse the Debye electronic length parameter, Helmholtz–Smoluchowski velocity, Prandtl number and thermal radiation. Additionally, streamlines are used to examine the phenomenon of entrapment. Graphs are used to explain the influence of different parameters on the flow and temperature. The findings of the current model have practical implications in the design of microfluidic devices for different particle transport phenomena at the micro level. Additionally, the noteworthy results highlight the advantages of electro-osmosis in controlling both flow and heat transfer. Ultimately, our objective is to use these findings as a guide for the advancement of lab-on-a-chip systems.
Singularly perturbed ordinary differential equations often exhibit Stokes’ phenomenon, which describes the appearance and disappearance of oscillating exponentially small terms across curves in the complex plane known as Stokes lines. These curves originate at singular points in the leading-order solution to the differential equation. In many important problems, it is impossible to obtain a closed-form expression for these leading-order solutions, and it is therefore challenging to locate these singular points. We present evidence that the analytic leading-order solution of a linear differential equation can be replaced with a numerical rational approximation using the adaptive Antoulas–Anderson (AAA) method. Despite such an approximation having completely different singularity types and locations, we show that the subsequent exponential asymptotic analysis accurately predicts the exponentially small behaviour present in the solution. For sufficiently small values of the asymptotic parameter, this approach breaks down; however, the range of validity may be extended by increasing the number of poles in the rational approximation. We present a related nonlinear problem and discuss the challenges that arise due to nonlinear effects. Overall, our approach allows for the study of exponentially small asymptotic effects without requiring an exact analytic form for the leading-order solution; this permits exponential asymptotic methods to be used in a much wider range of applications.
We consider planar flow involving two viscous fluids in a porous medium. One fluid is injected through a line source at the origin and moves radially outwards, pushing the second, ambient fluid outwards. There is an interface between the two fluids and if the inner injected fluid is of lower viscosity, the interface is unstable to small disturbances and radially directed unstable Saffman–Taylor fingers are produced. A linearized theory is presented and is compared with nonlinear results obtained using a numerical spectral method. An additional theory is also discussed, in which the sharp interface is replaced with a narrow diffuse interfacial region. We show that the nonlinear results are in close agreement with the linearized theory for small-amplitude disturbances at early times, but that large-amplitude fingers develop at later times and can even detach completely from the initial injection region.
Mathematical modelling of microwaves travelling through bauxite ore provides a way to compute moisture content in the free space transmission method given data on signal attenuation, phase shift and variable bauxite depth. We extend a recently developed four-layer model that uses coupled ordinary differential wave equations for the electric field together with continuity boundary conditions at interfaces between ore, air and antenna to find a solution that incorporates multiple internal reflections in ore and air. The model provides good fits to data, depending on ore permittivity and conductivity.
Our extensions are to use effective medium models to obtain electromagnetic properties of the ore mixture from moisture content and to incorporate the damping effects of scattering from the ore surface. Our model leads to a formula for the received signal showing how signal strengths SS and phase shifts depend on the moisture content of the bauxite ore, through the effects of moisture on permittivity and conductivity. We show that SS may be noninvertible, indicating that attenuation data alone cannot be used to infer moisture content. Combining with phase data typically corrects the noninvertibility. Reducing the operating frequency dramatically improves the usefulness of signal strength data for inferring moisture content.
Designing a reasonable M/G/1 retrial queue system that enhances service efficiency and reduces energy consumption is a challenging issue in Information and Communication Technology systems. This paper presents an M/G/1 retrial queue system incorporating random working vacation (RWV) and improved service efficiency during vacation (ISEV) policies, and examines its optimal queuing strategies. The RWV policy suggests that the server takes random working vacations during reserved idle periods, effectively reducing energy consumption. In contrast, the ISEV policy strives to augment service efficiency during regular working periods by updating, inspecting or maintaining the server on vacations. The system is transformed into a Cauchy problem to investigate its well-posedness and stability, employing operator semigroup theory. Based on the system’s stability, steady-state performance measures, such as service efficiency, energy consumption and expected costs, are quantified using the steady-state solution. The paper subsequently demonstrates the existence of optimal queuing strategies that achieve maximum efficiency and minimum expected costs. Finally, two numerical experiments are provided to illustrate the effectiveness of the system.
Tissues form from collections of cells that interact together mechanically via cell-to-cell adhesion, mediated by transmembrane cell adhesion molecules. Under a sufficiently large amount of induced stress, these tissues can undergo elastic deformation in the direction of tension, where they then elongate without any topological changes, and experience plastic deformation within the tissue. In this work, we present a novel mathematical model describing the deformation of cells, where tissues are elongated in a controlled manner. In doing so, the cells are able to undergo remodelling through elastic and then plastic deformation, in accordance with experimental observation. Our model describes bistable sizes of a cell that actively deform under stress to elongate the cell. In the absence of remodelling, the model reduces to the standard linear interaction model. In the presence of instant remodelling, we provide a bifurcation analysis to describe the existence of the bistable cell sizes. In the case of general remodelling, we show numerically that cells within a tissue may populate both the initial and elongated cell sizes, following a sufficiently large degree of stress.
This paper examines the issue of derivative pricing within the framework of a fractional stochastic volatility model. We present a deterministic partial differential equation system to derive an approximate expression for the derivative price. The proposed approach allows for the stochastic volatility to be expressed as a composition of deterministic functions of time and a fractional Ornstein–Uhlenbeck process. We apply this method to the European option pricing under the fractional Stein–Stein volatility model, demonstrating its feasibility and reliability through numerical simulations. Our numerical simulations also illustrate the impact of the parameters in the fractional stochastic volatility model on the option price.
A nonlinear evolution equation correct to fourth order is developed for gravity-capillary waves on linear shear currents in finite water depth. Therefore, this equation covers both effects of depth uniform currents and uniform vorticity. Starting from this equation, an instability analysis is then made for narrow banded uniform Stokes waves. The notable feature is that our investigation due to fourth order shows a remarkable improvement compared with the third-order one, and produces an excellent result compatible with the exact result of Longuet-Higgins. We observe that linear shear currents considerably change the modulational instability properties of capillary-gravity waves, such as the growth rate and bandwidth of instability.
Based on biochemical kinetics, a stochastic model to characterize wastewater treatment plants and dynamics of river water quality under the influence of random fluctuations is proposed in this paper. This model describes the interaction between dissolved oxygen (DO) and biochemical oxygen demand (BOD), and is in the form of stochastic differential equations driven by multiplicative Gaussian noises. The stochastic persistence problem for the model of the system is analysed. Further, a numerical simulation of the stationary probability distributions of BOD and OD by approximations of the stochastic process solution is presented. These results have implications for the prediction and control of pollutants.
The Hamiltonian of a conventional quantum system is Hermitian, which ensures real spectra of the Hamiltonian and unitary evolution of the system. However, real spectra are just the necessary conditions for a Hamiltonian to be Hermitian. In this paper, we discuss the metric operators for pseudo-Hermitian Hamiltonian which is similar to its adjoint. We first present some properties of the metric operators for pseudo-Hermitian Hamiltonians and obtain a sufficient and necessary condition for an invertible operator to be a metric operator for a given pseudo-Hermitian Hamiltonian. When the pseudo-Hermitian Hamiltonian has real spectra, we provide a new method such that any given metric operator can be transformed into the same positive-definite one and the new inner product with respect to the positive-definite metric operator is well defined. Finally, we illustrate the results obtained with an example.