Economic & Financial Modeling of Markets, Institutions & Instruments

A model is a simplified representation of a real object or situation that facilitates our understanding and manipulation of the real thing. Models are therefore pervasive, not only in the everyday world, but in academic, industry and government research for the purpose of solving problems and making decisions. The cases addressed in this volume share a common focus in the use of economic and financial modelling techniques, but concern a wide variety of markets, institutions, and instruments. Each of the chapters illustrates well the complexity of modelling and some of the challenges faced when trying to simplify complex real world behaviour and outcomes using models. The contributors to the volume include academic and non-academic researchers with significant financial, mathematical, and statistical modelling experience. This mix ensures that the book has comprehensive coverage of many of the issues involved, is highly accessible to the professional and nonprofessional reader alike, and that it will serve as an authoritative source of information on economic and financial modelling and on the specific topic areas addressed for years to come.