Practical Applications of Approximate Equations in Finance and Economics
by Manuel Tarrazo
Category: Business & Economics

Conventional methods of financial modeling are often overly exact, to the point that their purpose--to aid in financial decision making--is easily lost. Tarrazo's approximation techniques and models provide sound and sophisticated ways to deal with the problem and to improve results in finance, economic analysis, and portfolio management. He reviews model building, particularly with simultaneous equation systems, then provides a simple way to solve them with approximations, and shows how to apply the models to real world problems. Down to earth, readable, and meticulously explained throughout, the book is not only an important tool in practical problem solving situations, but it also provides valuable methods and guidance for upper-level students and their instructors.