Mathematical models are an important tool for neuroscientists. During the last 30 years
many papers have appeared on single neuron description and specifically on stochastic …

We develop a simple approach to valuing risky corporate debt that incorporates both default
and interest rate risk. We use this approach to derive simple closed‐form valuation …

In the end of Chapter I we have seen that the optimal stopping problem for a Markov process
X with the value function V is equivalent to the problem of finding the smallest …

The chapter gives a broad outline of the central themes of credit risk modeling starting with
the modeling of default probabilities, ratings and recovery. We present the two main …

Most structural models of default preclude the firm from altering its capital structure. In
practice, firms adjust outstanding debt levels in response to changes in firm value, thus …

A large class of statistical decision models for performance in simple information processing
tasks can be described by linear, first-order, stochastic differential equations (SDEs), whose …

Diffusion models of decision making, in which successive samples of noisy evidence are
accumulated to decision criteria, provide a theoretical solution to von Neumann's problem of …

Visual psychophysics has shown that the perceptual representation of a stimulus has
complex time-varying properties that depend on the response characteristics of the channel …

Abstract [Correction Notice: An Erratum for this article was reported in Vol 121 (1) of
Psychological Review (see record 2014-03591-005). The link to supplemental material was …

Credit risk is an important consideration in most financial transactions. As for any other risk,
the risk taker requires compensation for the undiversifiable part of the risk taken. In bond …