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Category: Models

Biology is Destiny?

I haven’t read The Social Animal by David Brooks, which I gather is about the ways in which a couple’s life illustrates the insights of…

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Black-Scholes Or Bust

Black-Scholes or Bust There are two ways to look at the derivation of Black-Scholes: (i) the way Black and Scholes derived it originally, which was…

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Calibration

At work this morning I found myself thinking about calibration. Lately, some people have tried to debunk the idea of calibrating financial models, but I…

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Finance For The Ages

Almost four years ago I had a competition in which I asked people to enter one sentence that would pass on the essence quantitative finance…

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What Humans Can Do

An interesting remark, but I think a fallacious one, by Richard Dawkins in a recent conversation with David Attenborough: RD: There does seem to be…

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What Humans Can Do

An interesting remark, but I think a fallacious one, by Richard Dawkins in a recent conversation with David Attenborough: RD: There does seem to be…

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Artificial Intelligence and Natural Stupidity

Finally, a sensible Op-Ed about AI and the premature and naive attribution of human qualities to human artefacts: Jaron Lanier in the NY Times

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Disclaimers

Wall Street emails end with a disclaimer saying “Nothing in this email should be construed as a solicitation.” This is for legal protection. Environmentalists inform…

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Eating Your Dog

A few months ago I reread parts of The Ethics, Spinoza’s attempt to derive the laws of appropriate human behavior from first principles. Spinoza’s ideal…

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Premises Premises

Walking to work this morning I passed a Citibank branch which prominently displayed their promises to New York. The first was: We Promise to be…

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Encoding

I gave a talk recently in which I remarked that what distinguished theories from models iis that theories aspire to some sort of absolute truth…

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A Model is Only a Model …

but a good cigar is a smoke. Rudyard Kipling understood this. Why does no one else?

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Paying in Kind

 Part of the trouble with the economic crisis is that people and firms have an incentive to borrow short term to invest in long-term…

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On Models

Written for the Encyclopedia of Quantitative Finance www.ederman.com…

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Skewed

1. When did people first start to begin their emails with “Good morning” or “Good afternoon”? It suggests that you’re going to pay attention to…

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