Ergodicity economics is an approach to understanding economic systems that emphasizes the difference between time averages and ensemble averages in the context of decision-making under uncertainty. The term "ergodicity" comes from statistical mechanics, where it refers to systems that exhibit the same statistical properties over time as they do across different states or configurations.

Mean-field game theory (MFG) is a mathematical framework used to analyze strategic interactions among a large number of agents, each of whom makes decisions based on their own objectives while considering the collective impact of all agents on the system. The essential idea of MFG is that as the number of players becomes very large, the effect of any individual player on the overall dynamics becomes negligible. Instead, each player interacts with the statistical distribution of all other players.

The Median Voter Theorem (MVT) is a proposition in political science and economics that suggests that in a majority-rule voting system, the preferences of the median voter will ultimately be reflected in the policies adopted by the government. The theorem is based on the assumption that voters have single-peaked preferences, meaning that each voter has a most preferred outcome and their preferences decrease as they move away from that outcome.

The Slutsky equation is an important concept in microeconomics, particularly in the analysis of consumer choice and demand. It helps to decompose the effect of a price change on the quantity demanded of a good into two distinct components: the substitution effect and the income effect.

Autoregressive Conditional Duration (ACD) is a statistical modeling framework primarily used in the analysis of time series data, particularly in situations where the timing of events is of interest. It is often applied in fields such as finance, econometrics, and survival analysis to model the durations between consecutive events. ### Key Concepts: 1. **Duration**: In this context, duration refers to the time interval between consecutive occurrences of an event.

Consumer math is a branch of mathematics that deals with practical applications of mathematical concepts in everyday financial decisions and transactions. It focuses on the skills and calculations necessary for managing personal finances, making informed purchasing decisions, and understanding financial products and services. Key topics in consumer math may include: 1. **Budgeting**: Learning how to allocate income towards various expenses, savings, and investments.

David E. Shaw is an American entrepreneur, computer scientist, and investor known for his contributions to the field of computational biology and finance. He is the founder of D.E. Shaw Group, a global investment and technology development firm that specializes in quantitative and algorithmic trading. Shaw has a background in computer science, having earned a Ph.D. from Stanford University.

Enterprise value (EV) is a financial metric that reflects the total value of a company, taking into account not just its equity but also its debt and cash holdings. It provides a comprehensive measure of a company's overall worth and is often used in mergers and acquisitions, as well as for assessing the value of a firm in comparison to its peers.

The Feynman-Kac theorem is a fundamental result in stochastic processes, particularly in the context of linking partial differential equations (PDEs) with stochastic processes, specifically Brownian motion. It provides a way to express the solution of a certain type of PDE in terms of expectations of functionals of stochastic processes, such as those arising from Brownian motion.

The Modified Dietz method is a performance measurement technique used to evaluate the return on an investment portfolio over a specific time period. It accounts for the timing of cash flows in and out of the portfolio, which is crucial for accurately assessing performance, especially when there are multiple transactions throughout the measurement period. ### Key Features of the Modified Dietz Method: 1. **Cash Flow Adjustment**: The method adjusts for cash flows by giving different weights to cash flows based on when they occur within the period.

Modified Internal Rate of Return (MIRR) is a financial metric used to evaluate the attractiveness of an investment or project. It improves upon the traditional Internal Rate of Return (IRR) by addressing some of its limitations, particularly the assumptions made regarding reinvestment rates. Here's a breakdown of MIRR: 1. **Definition**: MIRR modifies the IRR by taking into account the cost of capital and the reinvestment rate for cash flows.

The Financial Modelers' Manifesto is a document that outlines best practices and principles for financial modeling, particularly in Excel. It was created by a community of financial modelers who sought to improve the quality and consistency of financial models in practice. The manifesto emphasizes clarity, transparency, and accuracy in financial modeling and aims to guide modelers in creating models that are not only functional but also easy to understand and maintain.

Fugit is a term that can refer to different things depending on the context. Here are a few possible interpretations: 1. **Fugit (the term)**: In Latin, "fugit" means "he/she/it flees" or "it runs away." It's a form of the verb "fugere," which means "to flee" or "to escape.

The Motzkin-Taussky theorem is a result in the field of linear algebra and matrix theory, particularly in the context of the properties of certain matrices. It addresses the determinants of matrices that are dominated by certain types of comparisons among their entries. Specifically, the theorem states that if \( A \) is an \( m \times n \) matrix that is non-negative (i.e.

Forward volatility refers to the expected volatility of an asset's return over a future period, as implied by the pricing of options or other derivatives. It is an essential concept in finance, particularly in options pricing models. ### Key Points of Forward Volatility: 1. **Forward Contracts vs. Spot Contracts:** Forward volatility i​s related to the idea of forward contracts, which are agreements to buy or sell an asset at a future date at a price agreed upon today.

A frictionless market is an idealized concept in economics and finance where there are no transaction costs, taxes, barriers, or other impediments to trading. In such a market, buyers and sellers can exchange goods and services freely and efficiently. Here are some key features of a frictionless market: 1. **No Transaction Costs**: There are no fees associated with buying or selling assets, such as brokerage fees or commissions.

The Heath–Jarrow–Morton (HJM) framework is a mathematical model used in finance to describe the evolution of interest rates over time. It is particularly useful for modeling the entire term structure of interest rates, which refers to the relationship between interest rates of different maturities. The HJM framework was developed by David Heath, Robert Jarrow, and Andrew Morton in the early 1990s.

Holding Period Return (HPR) is a measure of the total return on an investment over the period it is held. It considers both the income generated by the investment (such as dividends or interest) and any capital gains or losses realized during the holding period. HPR can be expressed as a percentage and is useful for investors to evaluate the performance of their investments over a specific timeframe.

Indifference price refers to the price at which an individual or an entity is indifferent between holding an asset and not holding it, meaning that the individual derives the same level of utility or satisfaction from both options. In a financial context, this concept is often applied to situations involving risky assets. For example, an investor might determine an indifference price for a stock based on their risk preferences, expected returns, and overall portfolio construction.