Machine learning methods for big data trade off bias for precision in prediction. To understand the implications for financial markets, I formulate an asymmetric information model where agents optimally choose a biased estimator. The model identifies a novel cost of complexity that arises...

Statistical analysis of stock markets and foreign exchange markets has demonstrated the intermittent nature of economic time series. A nonlinear model of business cycles is able to simulate intermittency arising from order-chaos and chaos-chaos transitions. This monograph introduces new concepts...