We review the theory of leverage developed in collateral equilibrium models with incomplete markets. We explain how leverage tends to boost asset prices, and create bubbles. We show how leverage can be endogenously determined in equilibrium, and how it depends on volatility. We describe the dynamic feedback properties of leverage, volatility, and asset prices, in what we call the Leverage Cycle...

trol: A Neural Network Approach by G.P. Liu, Springer, New York, 2001, 210 pp., Euro 79.95, ISBN 1-85233-342-1. Reviewed by Victor M. Becerra, University of Reading, U.K. The field of neural networks is vast, with many different known network architectures and training algorithms. This monograph deals with the application of neural networks to nonlinear identification and control. The book focu...

by Stephen Elliott, Academic Press 2001, 511 pp., ISBN 0-12-237085-6, $89.95. Reviewed by Sean Wellington, Southampton Institute, U.K. This useful book is written in an accessible textbook style and provides a thorough treatment of the theory and practice of active control system design. Chapter 1 introduces the physical principles of active control, in particular, analytical models of various ...

Context & motivation. During model-based engineering, numerous diagrams are created , some of which document the same behavioral properties of the system from different perspectives (cf. [1]). In industrial practice these diagrams are often developed or revised independently of each other. In consequence, inconsistencies will almost inevitably arise during the development. This situation may, f...

We model a family of peer-reviewing processes as gametheoretic problems. The model helps to understand elements of existing peer-reviewing procedures, and to predict the impact of new mechanisms. The peer-reviewing for evaluation of scientific results submitted to conferences involves complex decision processes of independent participants. Significant tax-payer money is spent by governments for...