The primary objective of this paper is to demonstrate the usefulness of an artificial intelligence technique known as neural network analysis as an aid to uncovering the underlying patterns, or trace effects, of national culture. To make our case, we provide an application of the technique's...

The local correlation model allows pricing CDO tranches with varying implied correlations. The model is based on the classic one-factor copula model and views default correlation as a function of the market factor. This paper presents semi-closed formulae for the expected value of default risk...