Biologically Inspired Algorithms for Financial Modelling

Biologically inspired algorithms (BIA) has a special place in heuristic modeling in many different fields of computational sciences, for example in materials simulations, AI, operational research among many others. A recent book covers the area of Financial Modeling using BIAs. Chapters about corporate failure prediction using grammatical evolution and ant colony are quite interesting. I think topic of failure prediction is closely related to resilience of a financial institution, see my earlier blog entry.

n x n games: The stochastic linking dynamics

Interesting generalization of the stochastic linking dynamics is proposed by a Chinese team.
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Similation of rare-events review

A recent review on rare event similation both from stochastic and Hamiltonian dynamics point of view is presented by French group [ article ].

Fokker-Planck Equation with logarithmic potential

Israeli group recently shown exact solution of Fokker-Planck equation with 1D logarithmic potential [ article ]. Group explicitly construct probability density function of diffusing particle in a potential, a ln x, a >0.