Discover the Heston Model, a stochastic volatility model for European options pricing. Learn how it differs from ...

There is hardly any literature on modelling nonlinear dynamic relations involving nonnormal time series data. This is a serious lacuna because nonnormal data are far more abundant than normal ones, ...

Backsolving is a class of methods that generate simulated values for exogenous forcing processes in a stochastic equilibrium model from specified assumed distributions for Euler-equation disturbances.

Pietro Rossi had a problem. An insurance company needed a model that could price bonds based on the likelihood of changes in credit ratings. The standard, off-the-shelf models are based on probability ...

Systems biology modeling is entering a new phase. For decades, computational models—ODE and PDE systems, stochastic simulations, constraint-based networks, ...