Model
based on probabilities and statistics to represent in a simplified way the
influence of one or several variables (explanatory or exogenous variables) on
the variable of interest (explained or endogenous variable). The parameters of
the model are estimated in order to be able to envisage the value of the
variable explained for new values of the explanatory variables. For example, the
model estimated in RiskDynaMetrics allows determining the
risk aversion (and
consequently to calculate the optimal portfolio) on the only basis of the
observed individual characteristics and of the responses to the
lotteries. The
econometric models also allows to test various theories and to select those
which best explain investors' behavior.
To go back to the questionnaire, please use the Back key of your navigator.