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
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)
point y in n+m-dimensional vector space (holdings including money,
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.
- 1. revise linear algebra and vector spaces.
- 2. revise elementary particle motion.
- 3. analyse financial tool
- 4. examine ethical considerations