Skip to content →

Category: Finance

Model “Risk”

I was having a conversation about model risk the other day, and I think it’s a misnomer. Risk to me means the possibility that something…

Comments closed

Supermodels

Marek Musiela gave a very interesting talk at Columbia the other evening about trying to use a derivatives framework to handle optimal asset allocation. A…

Comments closed

A Good Model

Everyone always wants to know what makes a good model. One way to think about it is that a good model takes some already valid…

Comments closed

Why Models Work [?]

A student at another university recently sent me a question which I’ve often wondered about myself: “Any introductory economics course in college will introduce the…

Comments closed