Understanding and measuring model risk is important to financial practitioners. However, there lacks a non-parametric approach to model risk quantification in a dynamic setting and with path-dependent losses. We propose a complete theory generalizing the relative-entropic approach by Glasserman...

By treating the financial market as a thermodynamic system, we establish a one-to-one correspondence between thermodynamic variables and economic quantities. Measured by the expected loss under the worst-case scenario, financial risk caused by model uncertainty is regarded as a result of the...

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...

Electric vehicles are an important part of urban green transportation network, and their popularization and application are of great significance to the sustainable development of cities. In recent years, electric vehicles continue to make up greater portions of the vehicle fleet, yet are...

It is important to guide companies to choose green production behavior through government regulation. Using research data of 592 manufacturing companies in China, this study used Stata software and Process plug-in to build Ordered Probit regression and multiple chain mediation models. It...