Robustness (economics)
Encyclopedia
In economics
, robustness defines the ability of a financial trading
system to remain effective under different market
s and different market conditions, or the ability of an economic model to remain valid under different assumptions, parameters and initial conditions.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, robustness defines the ability of a financial trading
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
system to remain effective under different market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
s and different market conditions, or the ability of an economic model to remain valid under different assumptions, parameters and initial conditions.