The attractive possibility that financial indices may be chaotic has been the subject of much study. In this paper we address two specific questions: "Masked by stochasticity, do financial data exhibit deterministic nonlinearity?", and "If so, so what?". We examine daily returns from three...

Key Features:Despite standard nonlinear modeling methods (neural networks, radial basis functions and so on) being the subject of numerous excellent texts, this book focuses on finding the best model and how to determine when a given model is "good enough"Several new, state-of-the-art methods to...