This paper analyzes the impact of model complexity on the valuation of a project financed power plant along two dimensions: The NPV distribution and the expected cumulative default probability of the project. Model complexity is separated into forecast and simulation complexity. Thereby, we aim...

Maximum-likelihood estimates of the parameters of stochastic differential equations are consistent and asymptotically efficient, but unfortunately difficult to obtain if a closed-form expression for the transitional probability density function of the process is not available. As a result, a...

The Bitcoin (BTC) market presents itself as a new unique medium currency, and it is often hailed as the "currency of the future". Simulating the BTC market in the price discovery process presents a unique set of market mechanics. The supply of BTC is determined by the number of miners and...

Complex systems may be a useful methodological tool to address "challenges for research in development". There is a huge and growing literature on complex systems and economic theory that might be related to early intuitions of classical economists on the workings of capitalist economies....