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Although they treat stock and flow variables consistently, they usually model only individual stock variables such as physical capital, while monetary variables such as credit relations and debt are neglected. [23] [27] Therefore, attempts are made to analyse financial crises using stock-flow consistent models based on the accounting approach.
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. [1] This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project , or any other investment.
Assume that the flow is steady, two-dimensional, and fully developed (i.e., the velocity profile does not change along the streamwise direction). [45] Note that this widely-used fully-developed assumption can be inadequate in some instances, such as some compressible, microchannel flows, in which case it can be supplanted by a locally fully ...
The circular flow analysis is the basis of national accounts and hence of macroeconomics. The idea of the circular flow was already present in the work of Richard Cantillon. [3] François Quesnay developed and visualized this concept in the so-called Tableau économique. [4]
One of the assumptions of the Mundell–Fleming model is that domestic and foreign securities are perfect substitutes. Provided the world interest rate is given, the model predicts the domestic rate will become the same level of the world rate by arbitrage in money markets. However, in reality, the world interest rate is different from the ...
In fluid dynamics, the entrance length is the distance a flow travels after entering a pipe before the flow becomes fully developed. [1] Entrance length refers to the length of the entry region, the area following the pipe entrance where effects originating from the interior wall of the pipe propagate into the flow as an expanding boundary layer.
Financial risk modeling is the use of formal mathematical and econometric techniques to measure, monitor and control the market risk, credit risk, and operational risk on a firm's balance sheet, on a bank's accounting ledger of tradeable financial assets, or of a fund manager's portfolio value; see Financial risk management.
In fully developed flow no changes occurs in flow direction, gradient of all variables except pressure are zero in flow direction The equations are solved for cells up to NI-1, outside the domain values of flow variables are determined by extrapolation from the interior by assuming zero gradients at the outlet plane