?

Log in

No account? Create an account
Dr D's Journal
 
[Most Recent Entries] [Calendar View] [Friends View]

Sunday, May 29th, 2011

Time Event
3:48a
It came across my mind that the default is modelled in finance as an instantaneous and unexpected event.

The distribution of of probability of instantaneous default(s) is characterised by intensity (hazard rate).

That kind of modelling is more suitable to a human life rather than a financial construction that is engineered to be stable (firm). The whole point of social construction of such entity as the firm (or the economy as an ecology of firms) is to add stability and make the entity transient through individual events.
СКАЗАНО: 1 | СКАЗАТЬ

<< Previous Day 2011/05/29
[Calendar]
Next Day >>
About LiveJournal.com