Climate School Exercises

---

About this Repository

This repository contains some elementary experiments related to the DICE model, stochastic interest rates models and combinations thereof.

The experiments are associated with a session at the Munich Climate School on Climate Models and Interest Rate Risk.

Note: The repository may get some updates/improvements after the climate school.

Presentation

The presentation is available via SSRN:

Fries, Christian P., Climate Models and Interest Rate Risk: How interest rate risk affects inter-generational equity in climate models (October 10, 2024). https://ssrn.com/abstract=4986415

---

Numerical Experiments

There are currently seven different numerical experiments in the package net.finmath.climateschool.experiments.

Feel free play with them. Alter parameters and check results.

Note: We use models from finmath lib. This code is open source and available at https://github.com/finmath/finmath-lib

---

Importing in Eclipse from GitHub

Import this git repository into Eclipse and start working.

• Got to this repository on GitHub
• Click on “Clone or download” and copy the URL to your clipboard.
• Go to Eclipse and select File → Import → Git → Projects from Git (with smart import).
• Select “Clone URI” and paste the GitHub URL from step 2.
• Select "main", then Next → Next → Finish.

Note: If you choose "Projects from Git" without the option "(with smart import)" you may expirience that the project is not imported into Eclipse, but it was successfully checked out via git, i.e. you find the project files in you local git folder. In that case, you can import the project "as maven project" (see below).

Importing in Eclipse (as Maven Project) (Alternatively)

If you checked out the git repository manually (git clone), then import the local git folder as Maven Project;

• File → Import → Maven → Existing Maven Projects
• Select the project folder in you local git folder.

Testing your Setup

To test your setup, run the Java Class Test.java in the package net.finmath.climateschool.begin. To do so: In the Eclipse Project Explorer:

• Expand `src/main/java'
• Expand net.finmath.climateschool.begin
• Right-click on the class Test.java,
• then select “Run As → Java Application".

Update the Project (later)

To get an update of this project at a later time

• Right click on the project,
• then select “Team → Pull".

This will pull updates committed to the project.

Note: If you modified files in the project, you may see "merge conflicts". At the current stage it is recommended that you do not modify existing files. You may add new ones.