Capturing Low-Probability, High-Impact Events 'Black Swans' in Economic and Financial Models

Capturing the effects of Low-Probability, High-Impact "Black Swans" in the existing stochastic and deterministic models is tremendously Important. On this page, I would like to share with the members an open access, peer reviewed published research findings of my PhD thesis on how to capture the effects of Low-Probability, High-Impact Events in our existing economic and financial models. I shall begin with the incorporation of fat-tailed effects of the underlying assets probability distribution in the popular LOGIT and PROBIT MODELS. INTRODUCTION The Global financial markets have experienced series of financial and economic crises right from the inception and from generation to generation. Banks, Companies and the world economy experienced catastrophic deterioration and serious corporate failures by systemic risk effect.