Recently journal Physica A accepted our, A. Kononovicius and J. Ruseckas, manuscript titled "Nonlinear GARCH model and 1/f noise" [1]. In this article we shown that simple memory-less model with nonlinear term may exhibit interesting stylized fact - long-range memory. Our manuscript is even more interesting due to the fact that considered model (and its various modifications) is somewhat widely used by the practitioners.

In the next couple of blog posts we will present the main results of the manuscript. We will start with a simple demonstration that GARCH(1,1) model may exhibit power law distributions

Vygintas Gontis, currently working in Boston, was invited to give a talk to a students of Boston Lithuanian School. Though slides are based on the previous talk, but the narrative is completely new and aimed at younger viewer (though once again it was given in Lithuanian).

Prof. Cars Hommes from University of Amsterdam is mathematician by training (he obtained his Bsc and Msc degrees as mathematician). Primarily he was interested in chaotic dynamics and strange attractors. But later he got interested in economics - he received economical PhD. Now prof. Cars Hommes is one of the most well known economists who setup lab experiments - he studies general features of irrational and heterogeneous economical behavior in safe environment.

We invite you to listen to his interview given to the Institute for New Economic Thinking (you may find INET on YouTube by clicking this link).

Imagine that you and 99 other people were invited to participate in a bet. All of you have to form a line, provide a one dollar bill on which all of you write your number in the line (from 1 to 100). Host will collect all of your one dollar bills and take them to a room with 100 boxes (each box has its own number (from 1 to 100)). Host will place randomly distribute your bills among the boxes. After he has done this, everyone of you one by one will come into the room and look for your own bill, but you will be able to check only 50 boxes. If every player will find his own bill, then you all will win a game - you will regain your dollar as well as you will additionally get another 100 dollars. But if at least one player makes a mistake, you all will lose. So would you sign up for such bet?

Economic inequality is becoming a forgotten topic, but there are much more to be said about it. In this talk, recorded for ted.com website, Richard Wilkinson provides a lot of examples (based on empirical data), which show how large inequality harms human societies. In order to create a better world for all of us, we should strive for larger economic equality.