Financial Systems


Financial Systems Dealing with complexity requires shifting our focus so as to look at not just the parts to a system but also the overall macro system as a whole. Ideally, this means formulating some kind of overall systemic model of the financial organization we are dealing with. Even if this model may appear very [...]

Financial Systems 2018-08-10T14:23:36+00:00

Financial Networks


Financial Networks Over the past decades, our financial system has evolved into a global network of connections between institutions, markets, assets and liabilities, leading many to the insight that this system may well be best modeled using the science of network theory. Network science is becoming a topic of major interest in financial research, particularly [...]

Financial Networks 2018-08-09T21:21:04+00:00

Behavioral Finance


Behavioral Finance Financial systems are composed of agents and the exchange of financial instruments within institutions and markets. Thus to understand this system we need to first understand something about the logic of the agents in the system; how agents make decisions about the allocation and exchange of financial assets is clearly important. Agents have [...]

Behavioral Finance 2018-08-09T20:57:45+00:00

Financial Agent-Based Modeling


Financial Agent-Based Modeling Financial theory and economics in general as they have evolved over the past century have adopted the modeling framework of physics and standard mathematics, which is known to be a reductionist framework. Much of current financial theory is based on linear assumptions and top-down equation-based models. Dynamic stochastic general equilibrium models are [...]

Financial Agent-Based Modeling 2018-08-09T20:46:44+00:00