Stockholm School of Economics

About: Stockholm School of Economics is a education organization based out in Stockholm, Sweden. It is known for research contribution in the topics: Population & Cost effectiveness. The organization has 1186 authors who have published 4891 publications receiving 285543 citations. The organization is also known as: Stockholm Business School & Handelshögskolan i Stockholm.

Minimal realizations of interest rate models

Abstract: We consider interest rate models where the forward rates are allowed to be driven by a multidimensional Wiener process as well as by a marked point process. Assuming a deterministic volatility structure, and using ideas from systems and control theory, we investigate when the input-output map generated by such a model can be realized by a finite dimensional stochastic differential equation. We give necessary and sufficient conditions, in terms of the given volatility structure, for the existence of a finite dimensional realization and we provide a formula for the determination of the dimension of a minimal realization. The abstract state space for a minimal realization is shown to have an immediate economic interpretation in terms of a minimal set of benchmark forward rates, and we give explicit formulas for bond prices in terms of the benchmark rates as well as for the computation of derivative prices.

Turning social capital into business? A study of Swedish biotech firms' international expansion

Abstract: The effects of using personal networks have in recent years become a topic of interest in the research area that focuses on the internationalization process of the firm. Few studies have, however, used the concept of social capital when studying the internationalization process of high-tech SMEs. In this explorative case study, ten Swedish SMEs in the biotech business have been examined in order to see how they use social capital for accessing the critical resources that they need in their internationalization process. The results of the study indicate that the usefulness of social capital changes during this process and that the wrong perception of social capital’s usefulness can lead to unsuccessful internationalization.