Emanuel Derman
Emanuel Derman is a South African-born financial theorist and a professor at Columbia University. He is known for his work in quantitative finance and for co-developing the Black-Derman-Toy model.
Books
This list of books are ONLY the books that have been ranked on the lists that are aggregated on this site. This is not a comprehensive list of all books by this author.
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1. Models Behaving Badly
Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life
"Models Behaving Badly" explores the distinction between models and theories in the financial and physical realms, emphasizing the dangers of relying too heavily on mathematical models to predict market behaviors. The author, a former theoretical physicist turned financial quant, draws from his extensive experience to critique the misuse of models in finance, contrasting them with theories in physics that are more robust and grounded in reality. He argues that while models can be useful tools, they are often mistaken for truth, leading to disastrous outcomes in markets and economies. The book serves as a cautionary tale about the limits of mathematical abstraction and the risks of applying scientific methods inappropriately to human behavior and economics.
