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We test the hypothesis that interconnections across financial institutions can be explained by a diversification motive. This idea stems from the empirical evidence of the existence of long-term exposures that cannot be explained by a…

Risk Management · Quantitative Finance 2015-02-24 Jean-Cyprien Héam , Erwan Koch

Recent industrial credit scoring models remain heavily reliant on manually tuned statistical learning methods. Despite their potential, deep learning architectures have struggled to consistently outperform traditional statistical models in…

Computational Engineering, Finance, and Science · Computer Science 2026-04-21 Yu Lei , Zixuan Wang , Yiqing Feng , Junru Zhang , Yahui Li , Chu Liu , Tongyao Wang , Dongyang Li

This paper presents novel results generated from a new simulation model of a contemporary financial market, that cast serious doubt on the previously widely accepted view of the relative performance of various well-known public-domain…

Trading and Market Microstructure · Quantitative Finance 2020-09-16 Michael Rollins , Dave Cliff

We investigate the macroeconomic consequences of narrow banking in the context of stock-flow consistent models. We begin with an extension of the Goodwin-Keen model incorporating time deposits, government bills, cash, and central bank…

General Economics · Economics 2018-10-16 Matheus R Grasselli , Alexander Lipton

Nested simulation is a natural approach to tackle nested estimation problems in operations research and financial engineering. The outer-level simulation generates outer scenarios and the inner-level simulations are run in each outer…

Risk Management · Quantitative Finance 2022-03-31 Kun Zhang , Ben Mingbin Feng , Guangwu Liu , Shiyu Wang

Software testing is an expensive and important task. Plenty of researches and industrial efforts have been invested on improving software testing techniques, including criteria, tools, etc. These studies can provide guidelines to select…

Software Engineering · Computer Science 2017-08-07 Xiaoran Xu , Chunrong Fang , Qing Wu , Jia Liu , Zhenyu Chen

In the context of understanding the nature of the risk transformation process of the financial system we propose an iterative risk-trading game between several agents who build their trading strategies based on a general utility setting.…

Condensed Matter · Physics 2009-11-10 Stefan Thurner , Rudolf Hanel , Stefan Pichler

Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate…

Risk Management · Quantitative Finance 2021-12-08 V. Macchiati , G. Brandi , G. Cimini , G. Caldarelli , D. Paolotti , T. Di Matteo

In this short paper, we introduce the Ridgeline model, an extension of the Roofline model [4] for distributed systems. The Roofline model targets shared memory systems, bounding the performance of a kernel based on its operational…

Distributed, Parallel, and Cluster Computing · Computer Science 2025-11-18 Fabio Checconi , Jesmin Jahan Tithi , Fabrizio Petrini

We propose a new model of the liquidity driven banking system focusing on overnight interbank loans. This significant branch of the interbank market is commonly neglected in the banking system modeling and systemic risk analysis. We…

Economics · Quantitative Finance 2016-03-17 Paweł Smaga , Mateusz Wiliński , Piotr Ochnicki , Piotr Arendarski , Tomasz Gubiec

We present Threadle, an open-source, high-performance, and memory-efficient network storage and query engine written in C#. Designed for working with full-population networks derived from administrative register data, which represent very…

Networking and Internet Architecture · Computer Science 2026-03-06 Carl Nordlund , Yukun Jiao

In macroeconomics, an emerging discussion of alternative monetary systems addresses the dimensions of systemic risk in advanced financial systems. Monetary regime changes with the aim of achieving a more sustainable financial system have…

General Economics · Economics 2023-01-11 Florian Peters , Doris Neuberger , Oliver Reinhardt , Adelinde Uhrmacher

In this study, we developed a computational framework for simulating large-scale agent-based financial markets. Our platform supports trading multiple simultaneous assets and leverages distributed computing to scale the number and…

Trading and Market Microstructure · Quantitative Finance 2024-02-01 Aaron Wheeler , Jeffrey D. Varner

Many programs evaluated in observational studies incorporate a sequential structure, where individuals may be assigned to various programs over time. While this complexity is often simplified by analyzing programs at single points in time,…

Econometrics · Economics 2025-06-16 Fabian Muny

When the available data for a target domain is limited, transfer learning (TL) methods can be used to develop models on related data-rich domains, before deploying them on the target domain. However, these TL methods are typically designed…

Statistical Finance · Quantitative Finance 2025-08-06 Ricardo Ribeiro Pereira , Jacopo Bono , Hugo Ferreira , Pedro Ribeiro , Carlos Soares , Pedro Bizarro

With the increasing adoption of Deep Neural Network (DNN) models as integral parts of software systems, efficient operational testing of DNNs is much in demand to ensure these models' actual performance in field conditions. A challenge is…

Software Engineering · Computer Science 2019-06-28 Zenan Li , Xiaoxing Ma , Chang Xu , Chun Cao , Jingwei Xu , Jian Lü

This paper integrates deep neural networks (DNNs) into structural economic models to increase flexibility and capture rich heterogeneity while preserving interpretability. Economic structure and machine learning are complements in empirical…

Econometrics · Economics 2025-04-28 Max H. Farrell , Tengyuan Liang , Sanjog Misra

This is the summary of first three years of activity of the EURETILE FP7 project 247846. EURETILE investigates and implements brain-inspired and fault-tolerant foundational innovations to the system architecture of massively parallel tiled…

Distributed, Parallel, and Cluster Computing · Computer Science 2013-06-24 Pier Stanislao Paolucci , Iuliana Bacivarov , Gert Goossens , Rainer Leupers , Frédéric Rousseau , Christoph Schumacher , Lothar Thiele , Piero Vicini

Modern machine learning models (such as deep neural networks and boosting decision tree models) have become increasingly popular in financial market prediction, due to their superior capacity to extract complex non-linear patterns. However,…

Machine Learning · Computer Science 2021-02-02 Chuheng Zhang , Yuanqi Li , Xi Chen , Yifei Jin , Pingzhong Tang , Jian Li

Optimizing credit limits, interest rates, and loan terms is crucial for managing borrower risk and lifetime value (LTV) in personal loan platform. However, counterfactual estimation of these continuous, multi-dimensional treatments faces…

Machine Learning · Computer Science 2025-08-12 Kexin Zhao , Bo Wang , Cuiying Zhao , Tongyao Wan
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