Mind the Gap! Stylized Dynamic Facts and Structural Models

Stochastic Behavioral Asset Pricing Models and the Stylized Facts

High-frequency financial data are characterized by a set of ubiquitous statistical properties that prevail with surprising uniformity. While these 'stylized facts' have been well-known for decades, attempts at their behavioral explanation have remained scarce. However, recently a new branch of simple stochastic models of interacting traders have been proposed that share many of the salient feat...

Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy

Some Stylized Facts

There are substantial differences between the economies of a Developed Country (DC) and a developing country, more aptly referred to as a Growing Less Developed Country (GDLC). An interesting question in the realm of macroeconomics iswhy the difference occurs between these two types of economies. Which are the features that set a typical DC apart from a typical GLDC? Here, our contention is tha...

Minority Games and stylized facts

The Minority Game is a generic model of competing adaptive agents, which is often believed to be a model of financial markets. We discuss to which extend this is a reasonable statement, and present minimal modifications that make this model reproduce stylized facts. The resulting model shows that without speculators, prices follow random walks, and that they disappear if enough speculators take...

Bibliometrics, Stylized Facts and the Way Ahead

This paper discusses how stylized facts derived from bibliometric studies can be used to build social simulation models of science. Based on a list of six stylized facts of science it illustrates how they can be brought into play to consolidate and direct research. Moreover, it discusses challenges such a stylized facts based approach of modeling science has to solve.