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In economics, construction of perfect models in a way that would be comparable to the standards customary in physical sciences is generally not feasible. In particular, the observed value for an economic equilibrium may deviate…

Probability · Mathematics 2026-01-05 Esa Nummelin , Elja Arjas

Superstatistics is a widely employed tool of non-equilibrium statistical physics which plays an important role in analysis of hierarchical complex dynamical systems. Yet, its "canonical" formulation in terms of a single nuisance parameter…

Statistical Finance · Quantitative Finance 2017-11-10 Petr Jizba , Jan Korbel , Hynek Lavička , Martin Prokš , Václav Svoboda , Christian Beck

Inference for mechanistic models is challenging because of nonlinear interactions between model parameters and a lack of identifiability. Here we focus on a specific class of mechanistic models, which we term stable differential equations.…

Computation · Statistics 2017-12-13 Philip Maybank , Ingo Bojak , Richard G. Everitt

Traditional statistical estimation, or statistical inference in general, is static, in the sense that the estimate of the quantity of interest does not change the future evolution of the quantity. In some sequential estimation problems…

Machine Learning · Computer Science 2021-12-01 Aolin Xu

Simulation studies are indispensable for evaluating statistical methods and ubiquitous in statistical research. The most common simulation approach is parametric simulation, where the data-generating mechanism (DGM) corresponds to a…

We consider dynamic stochastic economies with heterogeneous agents and introduce the concept of uniformly self-justified equilibria (USJE) -- temporary equilibria for which forecasts are best uniform approximations to a selection of the…

Theoretical Economics · Economics 2021-12-30 Felix Kubler , Simon Scheidegger

The increasing complexity of distribution network calls for advancement in distribution system state estimation (DSSE) to monitor the operating conditions more accurately. Sufficient number of measurements is imperative for a reliable and…

Applications · Statistics 2018-11-09 Mehdi Shafiei , Ghavameddin Nourbakhsh , Ali Arefi , Gerard Ledwich , Houman Pezeshki

Computer models, also known as simulators, can be computationally expensive to run, and for this reason statistical surrogates, known as emulators, are often used. Any statistical model, including an emulator, should be validated before…

Methodology · Statistics 2021-01-26 Evan Baker , Peter Challenor , Matt Eames

Distribution system state estimation (DSSE), which provides critical information for system monitoring and control, is being challenged by multiple sources of uncertainties such as random meter errors, stochastic power output of distributed…

Systems and Control · Electrical Eng. & Systems 2020-02-26 Ying Zhang , Jianhui Wang , Zhengshuo Li

We present a macroeconomic agent-based model that combines several mechanisms operating at the same timescale, while remaining mathematically tractable. It comprises enterprises and workers who compete in a job market and a commodity goods…

General Finance · Quantitative Finance 2012-11-26 Cornelia Metzig , Mirta Gordon

The objective of this work is the investigation of complexity, asymmetry, stochasticity and non-linearity of the financial and economic systems by using the tools of statistical mechanics and information theory. More precisely, this thesis…

Statistical Finance · Quantitative Finance 2024-08-30 Rubina Zadourian

We propose a stochastic map model of economic dynamics. In the last decade, an array of observations in economics has been investigated in the econophysics literature, a major example being the universal features of inequality in terms of…

General Finance · Quantitative Finance 2015-05-27 Anindya S. Chakrabarti

Evaluating the performance of machine learning models on diverse and underrepresented subgroups is essential for ensuring fairness and reliability in real-world applications. However, accurately assessing model performance becomes…

Machine Learning · Computer Science 2023-10-26 Boris van Breugel , Nabeel Seedat , Fergus Imrie , Mihaela van der Schaar

Curve fitting is a fundamental technique in engineering and scientific research, serving as a critical tool for extracting insights from data. This study explores the application of various statistical equations to estimate outcomes in…

Differential Geometry · Mathematics 2025-02-14 Hamidreza Moradi , Hamideh Hossei , Erfan Kefayat

Statistical systems are conceived from the standpoint of statistical mechanics, as made of a (generally large) number of identical units and exhibiting a (generally large) number of different configurations (microstates), among which only…

General Physics · Physics 2017-06-21 R. Caimmi

Monitoring downside risk and upside risk to the key macroeconomic indicators is critical for effective policymaking aimed at maintaining economic stability. In this paper I propose a parametric framework for modelling and forecasting…

Econometrics · Economics 2023-11-21 Andrea Renzetti

We develop a methodology that utilizes deep learning to simultaneously solve and estimate canonical continuous-time general equilibrium models in financial economics. We illustrate our method in two examples: (1) industrial dynamics of…

Computational Finance · Quantitative Finance 2023-05-18 Benjamin Fan , Edward Qiao , Anran Jiao , Zhouzhou Gu , Wenhao Li , Lu Lu

Inference on unknown quantities in dynamical systems via observational data is essential for providing meaningful insight, furnishing accurate predictions, enabling robust control, and establishing appropriate designs for future…

Methodology · Statistics 2018-02-06 M. Chung , M. Binois , R. B. Gramacy , D. J. Moquin , A. P. Smith , A. M. Smith

Delayed processes are ubiquitous in biological systems and are often characterized by delay differential equations (DDEs) and their extension to include stochastic effects. DDEs do not explicitly incorporate intermediate states associated…

Quantitative Methods · Quantitative Biology 2016-09-28 Jingchen Feng , Stuart Sevier , Bin Huang , Dongya Jia , Herbert Levine

Coarse-graining or model reduction is a term describing a range of approaches used to extend the time-scale of molecular simulations by reducing the number of degrees of freedom. In the context of molecular simulation, standard…

Dynamical Systems · Mathematics 2023-11-14 Thomas Hudson , Xingjie Helen Li