Economic and Financial Modeling of Markets, Institutions and Instruments

A model is a simplified representation of a real object or situation that facilitates our understanding and manipulation of the real thing. Models are therefore pervasive, not only in the everyday world, but in academic, industry, and government research for the purpose of solving problems and making decisions. The cases addressed in this volume share a common focus in the use of economic and financial modeling techniques, but concern a wide variety of markets, institutions, and instruments. Each of the chapters illustrates well the complexity of modeling and some of the challenges faced when trying to simplify complex real world behaviour and outcomes using models.