2 posts tagged with "Finance"

Traditional finance theories assume that individuals are rational actors who always make decisions to maximize their wealth. However, real-world financial behavior often deviates from this assumption. Enter behavioral finance—a fascinating field that blends psychology, sociology, and finance to understand how human emotions, biases, and heuristics influence financial decisions.

Vector Autoregression (VAR) is a statistical model used extensively in econometrics, known for its ability to capture the linear interdependencies among multiple time series. VAR models are particularly favored in economic forecasting where the behavior of several closely related economic variables needs to be forecast simultaneously.