Using TikZ and PGFPlots for Finance and Economics
This set of pages has one set of teaching examples, see for example the set of pictures for a class on Investments or on Options.
I also included some of the pictures I have used in my academic papers or discussions:
- Drawings for my paper on Bubbles and the Value of Innovation with Valentin Haddad and Paul Ho.
- Drawings for my paper on Asset Pricing with Entry and Imperfect Competition.
- Drawings for some of my discussions.
Quick Example
Households disagree on firms productivity and invest in them in consequence.
\tikzset{
pil/.style={ ->, thick, shorten <=0.5pt, shorten >=0.5pt,},
shaded/.style={circle,radius=\r,draw, pattern=north west lines,pattern color=black},
households/.style={rectangle, draw, fill=black!10, inner sep=5pt,
text width=4cm, text badly centered, minimum height=1.75cm,
font=\Large\sffamily}
}
% =============================================
% Large circle split in 4
\begin{scope}[color=black]
\draw[clip] (0, 0) circle (5cm);
\end{scope}
\draw [dashed] (0, 0) -- (0, 5);
\draw [dashed] (0, 0) -- (0, -5);
\draw [dashed] (0, 0) -- (5, 0);
\draw [dashed] (0, 0) -- (-5, 0);
% =============================================
% Circles in each of the separation
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc11) at (1.2, -3.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc12) at (2, -1.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc13) at (4, -2) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc13) at (1., -2) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc31) at (-1.2, -3.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc32) at (-2, -1.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc33) at (-3.75, -2) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc13) at (-3., -3) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc41) at (-1.2, 3.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc42) at (-2, 1.5) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc43) at (-3.75, 2) {};
\node[circle, draw=black, fill=white, inner sep=0pt,minimum size=15pt] (dc13) at (-2.75, +2.75) {};
\node at (2, 2) {\Huge \emph{etc.}};
% =============================================
% Draw Households
\node (investor1) at (-8,-1) {};
\node (investor2) at (-8, 1) {};
\node[alice, shirt = blue, saturated, minimum size=1.cm] at (-8., -1.) {};
\node[alice, shirt = red, skin=brown, hair=gray, saturated, minimum size=1.cm] at (-8., 1.) {};
\node[alice, shirt = gray, skin=brown, saturated, minimum size=1.cm] at (-10., -1.) {};
\node[bob, saturated, minimum size=1.cm] at (-10., 1.) {};
\node[businessman, female, shirt = gray, skin=brown, minimum size=1.cm] at (-12., -1.) {};
\node[charlie, shirt = gray, minimum size=1.cm] at (-12., 1.) {};
% =============================================
% Households Preferences
\node at (-0.7, -3.5) [red] {\Large \bfseries 3};
\node at (-0.4, -3.5) [blue] {\Large \bfseries 1};
\node at (-1.55, -1.5) [red] {\Large \bfseries 2};
\node at (-1.25, -1.5) [blue] {\Large \bfseries 3};
\node at (-3.3, -2) [red] {\Large \bfseries 1};
\node at (-3., -2) [blue] {\Large \bfseries 2};
\node at (-2.5, -3) [red] {\Large \bfseries 4};
\node at (-2.2, -3) [blue] {\Large \bfseries 4};
% =============================================
% All rankings
\node at (-0.7, 3.5) [red] {\Large \bfseries 3};
\node at (-0.4, 3.5) [blue] {\Large \bfseries 2};
\node at (-1.55,1.5) [red] {\Large \bfseries 2};
\node at (-1.25,1.5) [blue] {\Large \bfseries 1};
\node at (-3.3, 2) [red] {\Large \bfseries 1};
\node at (-3., 2) [blue] {\Large \bfseries 4};
\node at (-2.3, 2.75) [red] {\Large \bfseries 4};
\node at (-2.0, 2.75) [blue] {\Large \bfseries 3};
\node at (1.65, -3.5) [red] {\Large \bfseries 1};
\node at (1.95, -3.5) [blue] {\Large \bfseries 1};
\node at (2.45,-1.5) [red] {\Large \bfseries 2};
\node at (2.75,-1.5) [blue] {\Large \bfseries 3};
\node at (3.3, -2) [red] {\Large \bfseries 3};
\node at (3.55, -2) [blue] {\Large \bfseries 4};
\node at (1.8, -2) [red] {\Large \bfseries 4};
\node at (1.5, -2) [blue] {\Large \bfseries 2};
% =============================================
% Link Investors with their investments
\draw[pil, bend left=35, draw=red] (-7.5, 1) to (dc33.north);
\draw[pil, bend right=35, draw=blue] (-7.5, -1) to (dc31.west);
\draw[pil, bend left=35, draw=red] (-7.5, 1) to (dc43.west);
\draw[pil, bend right=35, draw=blue] (-7.5, -1) to (dc42.south);
\draw[pil, bend left=35, draw=red] (-7.5, 1) to (dc11.north);
\draw[pil, bend right=40, draw=blue] (-7.5, -1) to (dc11.south);
\node[circle, fill=blue, minimum size=15pt] (dc31blue) at (-1.2, -3.5) {};
\node[circle, fill=red, minimum size=15pt] (dc33red) at (-3.75, -2) {};
\node[circle, fill=blue, minimum size=15pt] (dc31blue) at (-2, 1.5) {};
\node[circle, fill=red, minimum size=15pt] (dc33red) at (-3.75, 2) {};
\node[semicircle, fill=blue, minimum size=7.5pt, rotate=90] (dc42blue) at (1.1, -3.5) {};
\node[semicircle, fill=red, minimum size=7.5pt, rotate=270] at (1.3,-3.5) {};
Thanks
This webpage has been inspired by Chiu Yu Ko.
Thanks for Dave Liepman for providing the Tufte css.
Send me an email for suggesting changes in the graphs.