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Some claim computers are getting better at finding profitable patterns in market data - Why hedge fund managers are happy to let the machines take over via…

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The effects of business models on bank risk before, during and after...

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Avoiding Mis-estimation of the CES Function: Unit Matters

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Reserve flows and monetary autonomy under a fixed exchange rate: the British...

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Estimating the money market microstructure with negative and zero interest rates

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Investment decisions when utility depends on wealth and other attributes

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Personalized goal-based investing via multi-stage stochastic goal programming

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A closed-form formula characterization of the Epps effect

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The Zumbach effect under rough Heston

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Bayesian regularized artificial neural networks for the estimation of the...

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Quantpedia in October 2019

Dear readers, Seven new Quantpedia Premium strategies have been added into our database in October, and five new related research papers have been included into existing Premium strategies....

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Blenheim Closes, Ushering in a New Era in Commodities

Willem Kooyker is folding up his tent at Blenheim Capital, the commodities-focused hedge fund headquartered in an office park in Berkeley Heights, N.J. Kooyker is a legend. In 1981, he went to work at...

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Multilevel evolutionary developmental optimization (MEDO): A theoretical...

What is motivation and how does it work? Where do goals come from and how do they vary within and between species and individuals? Why do we prefer some things over others? MEDO is a theoretical...

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Kernel Based Estimation of Spectral Risk Measures. (arXiv:1903.03304v2...

Spectral risk measures (SRMs) belongs to the family of coherent risk measures. A natural estimator for the class of spectral risk measures (SRMs) has the form of $L$-statistics. In the literature,...

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Spatial polarisation within foreign trade and transnational firms' networks....

After the fall of the Berlin Wall, Central and Eastern Europe were subject to strong polarisation processes. This article proposes examines two neglected aspects regarding the transition period: a...

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Exploring cities of Central and Eastern Europe within transnational company...

After the Fall of the Berlin Wall, Central Eastern European cities (CEEc) integrated the globalized world, characterized by a core-periphery structure and hierarchical interactions between cities. This...

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Option-based Equity Risk Premiums. (arXiv:1910.14522v1 [q-fin.CP])

We construct the term structure of the (forward-looking, US market) equity risk premium from SPX option chains. The method is "model-light". Risk-neutral probability densities are estimated by fitting...

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Credit risk with asymmetric information and a switching default threshold....

We investigate the impact of available information on the estimation of the default probability within a generalized structural model for credit risk. The traditional structural model where default is...

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Markov Chain Approximation of One-Dimensional Sticky Diffusions....

We develop continuous time Markov chain (CTMC) approximation of one-dimensional diffusions with a lower sticky boundary. Approximate solutions to the action of the Feynman-Kac operator associated with...

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Power Laws without Gibrat's Law. (arXiv:1910.14023v1 [econ.GN])

This paper shows that the power law property of the firm size distribution is a robust prediction of the standard entry-exit model of firm dynamics. Only one variation is required: the usual...

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