Emanuel Derman was a quantitative analyst (Quant) at Goldman Sachs, one of the financial engineers whose mathematical models became crucial for Wall Street. The reliance investors put on such quantitative analysis was catastrophic for the economy, setting off the ongoing string of financial crises that began with the mortgage market in 2007 and continues through today. Here Derman looks at why people -- bankers in particular -- still put so much faith in these models, and why its a terrible mistake to do so. Though ...
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Emanuel Derman was a quantitative analyst (Quant) at Goldman Sachs, one of the financial engineers whose mathematical models became crucial for Wall Street. The reliance investors put on such quantitative analysis was catastrophic for the economy, setting off the ongoing string of financial crises that began with the mortgage market in 2007 and continues through today. Here Derman looks at why people -- bankers in particular -- still put so much faith in these models, and why its a terrible mistake to do so. Though financial models imitate the style of physics and employ the language of mathematics, ultimately they deal with human beings. There is a fundamental difference between the aims and potential achievements of physics and those of finance. In physics, theories aim for a description of reality; in finance, at best, models can shoot only for a simplistic and very limited approximation to it. When we make a model involving human beings, we are trying to force the ugly stepsisters foot into Cinderellas pretty glass slipper. It doesnt fit without cutting off some of the essential parts. Physicists and economists have been too enthusiastic to acknowledge the limits of their equations in the sphere of human behavior--which of course is what economics is all about. Models.Behaving.Badly includes a personal account of Dermans childhood encounters with failed models--the oppressions of apartheid and the utopia of the kibbutz. He describes his experience as a physicist on Wall Street, the models quants generated, the benefits they brought and the problems, practical and ethical, they caused. Derman takes a close look at what a model is, and then highlights the differences between the successes of modeling in physics and its failures in economics. Describing the collapse of the subprime mortgage CDO market in 2007, Derman urges us to stop the na�ve reliance on these models, and offers suggestions for mending them. This is a fascinating, lyrical, and very human look behind the curtain at the intersection between mathematics and human nature.
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Add this copy of Models. Behaving. Badly. : Why Confusing Illusion With to cart. $25.00, like new condition, Sold by Southampton Sag Harbor Books rated 5.0 out of 5 stars, ships from Southampton, NY, UNITED STATES, published 2011 by Wiley.
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Like New in Like New jacket. First Edition Thus, First Printing. Published by John Wiley, 2011. Octavo. Black cloth boards stamped in gold. Book is like new; clean with no writing or names. Sharp corners and spine straight. Binding tight and pages crisp. Dust jacket is like new with very light shelf wear. 230 pages. ISBN: 9781119967163. 100% positive feedback. 30 day money back guarantee. NEXT DAY SHIPPING! Excellent customer service. Please email with any questions or if you would like a photo. All books packed carefully and ship with free delivery confirmation/tracking. All books come with free bookmarks. Ships from Southampton, New York. We Buy Books! Individual titles, libraries, collections. Message us if you have books to sell!
Add this copy of Models. Behaving. Badly: Why Confusing Illusion With to cart. $41.29, good condition, Sold by Anybook rated 4.0 out of 5 stars, ships from Lincoln, UNITED KINGDOM, published 2011 by John Wiley & Sons.
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This is an ex-library book and may have the usual library/used-book markings inside. This book has hardback covers. Clean from markings. In good all round condition. Dust jacket in good condition. Please note the Image in this listing is a stock photo and may not match the covers of the actual item, 600grams, ISBN: 9781119967163.
Add this copy of Models. Behaving. Badly. : Why Confusing Illusion With to cart. $61.44, good condition, Sold by Bonita rated 4.0 out of 5 stars, ships from Hialeah, FL, UNITED STATES, published 2011 by Wiley.
