Given the global dominance of American movies, they play a significant role in presenting U.S. ideology and culture to the world, thus raising concern of undermining domestic culture. This paper investigates whether trade shapes culture by studying the impact of imported American movies on...

We focus on two particular aspects of model risk: the inability of a chosen model to fit observed market prices at a given point in time (calibration error) and the model risk due to the recalibration of model parameters (in contradiction to the model assumptions). In this context, we use...