Discrete Optimization: Knapsack Problems
Filling a knapsack is an NP-hard optimization problem, it is widely believed that in the worst case it...
Essential Concepts of Business Taxation
Origin of Federal Taxation The first income tax in the US was enacted in 1634 by the Massachusetts...
Multilevel Models vs Marginal Models
Logistic Regression Logistic regression is an extension to linear regression. When there are only only 2 options for...
Shadow Banking
Shadow banking is “money market funding of capital market lending”. Financial globalization and the revolution of modern finance...
Interest Rate Swaps and Credit Default Swaps
Interest Rate Swaps The interest rate swap come into being because of certain kinds of market imperfections that...
Forwards and Futures
Economy is coherent, it has structure to it. The discipline of the clearing constraint that forces people, whether...
Indirect Finance and Direct Finance
Shadow banking refers to money market funding of capital market lending. We essentially need to extend the money...
Introduction to Transport Layer Protocols
Two transport layer protocols User Datagram Program (UDP) and Transmission Control Protocol (TCP) are built upon the best...
Introduction to Internet Protocol
TCP/IP Protocol Suite is to build a network of networks (Internet) that can operate over multiple, coexisting, and...
Global Liquidity and Foreign Exchange
International Transaction in 19th Century Suppose we have a surplus country which is selling goods and receiving bills...
Fitting Parametric Models to Data
The purpose of fitting models to data is to help answer research questions. We specify models based on...
Chartalism and Metallism
We have been thinking the hierarchy of money, with reserves (or currency which is the liability of the...
Operations Research: The Theory for Regression and SVM
The theory of Operations Research has been used to develop models in many fields like statistics and machine...
Lagrangian Duality and KKT Condition
In the case of unconstrained non-linear programs, we may determine whether the objective function is convex and then...
Convex Analysis
Compared with linear programs, non-linear programs (NLPs) are much more difficult to solve. In an NLP, a local...