Performance comparison of scenario-generation methods applied to a stochastic optimization asset-liability management model

In this paper, we provide an empirical discussion of the differences among some scenario tree-generation approaches for stochastic programming. We consider the classical Monte Carlo sampling and Moment matching methods. Moreover, we test the Resampled average approximation, which is an adaptation of...

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Detalles Bibliográficos
Autores: Oliveira, Alan Delgado de, Filomena, Tiago Pascoal, Righi, Marcelo Brutti
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2018
País:Brasil
Institución:Universidade Federal do Rio Grande do Sul (UFRGS)
Repositorio:Repositório Institucional da UFRGS
Idioma:inglés
OAI Identifier:oai:www.lume.ufrgs.br:10183/175136
Acceso en línea:http://hdl.handle.net/10183/175136
Access Level:acceso abierto
Palabra clave:Modelo de gestão
Otimização estocástica
Programacao estocastica
Scenario generation
Stochastic programing
Multistage
ALM
Descripción
Sumario:In this paper, we provide an empirical discussion of the differences among some scenario tree-generation approaches for stochastic programming. We consider the classical Monte Carlo sampling and Moment matching methods. Moreover, we test the Resampled average approximation, which is an adaptation of Monte Carlo sampling and Monte Carlo with naive allocation strategy as the benchmark. We test the empirical effects of each approach on the stability of the problem objective function and initial portfolio allocation, using a multistage stochastic chance-constrained asset-liability management (ALM) model as the application. The Moment matching and Resampled average approximation are more stable than the other two strategies.