Financial Networks, Softcover reprint of the original 1st ed. 1997
Statics and Dynamics
Coll. Advances in Spatial Science

Financial analysis is concerned with the study of capital flows over time and space. This book presents a new theory of multi-sector, multi-instrument financial systems based on the visualization of such systems as networks. The framework is both qualitative and computational and depends crucially on the methodologies of finite-dimensional variational inequality theory for the study of statics and equilibrium states and on projected dynamical systems for the study of dynamics and disequilibrium behavior. Moreover, it adds a graphical dimension to the fundamental economic structure of financial systems and their evolution through time.

I Background.- 1 Introduction and Overview.- 2 Foundations of Financial Economics.- II Methodological Foundations.- 3 Variational Inequalities.- 4 Projected Dynamical Systems.- 5 Nonlinear Networks.- III Single Country Models.- 6 Static Single Country Models.- 7 Static Single Country Hedging Models.- 8 Dynamic Single Country Models.- 9 Static Imperfect Market Models.- 10 Dynamic Imperfect Market Models.- IV International Models.- 11 International Financial Models.- 12 International Models with Hedging.- 13 Imperfect Market Models.- V Flow of Funds and Estimation.- 14 Flow of Funds Models.- VI Empirical Results.- 15 Empirical Analysis.- A Linear Algebra and Analysis.- A.1 Linear Algebra.- A.1.1 Vectors.- A.1.2 Matrices.- A.2 Real Analysis.- A.2.1 Sets.- A.2.2 Functions.- A.3 Optimization.- A.3.1 Karush-Kuhn-Tucker Optimization Conditions.- B Probability.- B.1 Probability Theory.- B.1.1 Random Variables and Probability Distributions.- B.1.2 Expectations of a Random Variable.- B.1.2.1 Normal Distribution.- B.1.2.2 Joint Distributions.- C Black and Scholes Model.- List of Figures.- List of Tables.

Uses brand new methodologies A general and comprehensive approach Provides a rigorous framework for modeling and computing general financial equilibrium problems