The Two-Factor Hul-white Model (equation 24.1, page 571) dx=0(0)+u-ax dt +o,dz1 du= -but +o,dz, where=f(r and the correlation between dz, and dz, is p The short rate reverts to a level dependent on u, and u itself is mean reverting

The Stock Price Assumption Consider a stock whose price is s In a short period of time of length 8t, the return on the stock is normally distributed

A Simple Binomial model A stock price is currently $20 In three months it will be either $22 or

Analyze/ General linear Model/ Univariate 4 Univariate

Goal Develop the Solow Growth Model How much of the economy's output should be consumed today and how much should be saved for the future? Static analysis(Ch. 3)> Dynamic

Solow growth model 1. Production function(total; per capita) 2. Savings investment schedule 3. Depreciation 4. Steady state 5. Golden rule 6. Path from one steady state to the Golden Rule steady state

Microeconomics behind Macroeconomics Consumption Investment Money and Advances in business cycle model

New Words deadeye: In informal English, dead may mean \precise(ly)\ or accurate(ly)\. Bill was dead shot with rifle. The model plane landed dead in the middle of the square

数学模型( Mathematical Model) 是用数学符号、数学式子、程序、图形等对实际课题 本质属性的抽象而又简洁的刻划,它或能解释某些客 观现象,或能预测未来的发展规律,或能为控制某一 现象的发展提供某种意义下的最优策略或较好策略

Extensional Fault Systems A- Evolutionary model illustrating progressive extension accommodated by block rotation above a low-angle extensional fault. B-Listric fault with hangingwall rollover anticline. Area and B are equal. C-Flat/ramp geometry of fault produces geometrically necessary folding in hangingwall