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Mathematics at Leeds University

Paul Martin's Ethical Finance Project Links Page

The objective is to construct a mathematical model of certain financial tools (you choose which) through which ethical considerations about these tools can be articulated.
The aim is to model accurately enough, so that ethically `preferable' tools can be designed.
The challenge is to define the ethical considerations tightly enough that they can be articulated in a mathematical model. This might require a good understanding of the (social?) context of each ethical component. (Such as can sometimes be found in the ethical formulations of Sharia, for example.)

Our base model

An n-commodity marked `with money' (local-universal unit)
= point x in n-dimensional vector space (money values of commodities)

A person
= point y in n+m-dimensional vector space (holdings including money, influence etc)

QUESTION: but does it make sense for all commodity prices to go up (or all down)? (Inflation/deflation//only when dynamics comes in.)

Wealth of person in market (in money units)
= (1,x,...)(y_0, y_1, y_2, ...)^t where y_0 is money.

Now x = x(t), so wealth is also time dependent.

QUESTION: does x(t) behave like a Brownian particle with drift in a field?

y=y(t) by trading^* and by wealth creation and use.
(* assume all trades use market, so are instantaneously wealth neutral.)
There is possible lag in applying market at point of trade - but probably can neglect this.

project links: