Specifying the Functional Parameters of a Corporate Financial Model for Dynamic Financial Analysis

When people speak of parameterizing a model, whether it be for dynamic financial analysis or otherwise, they typically discuss the ranges of values that key model elements can assume. In our paper we have broadened the concept of parameterization to include the functionality a model needs to contain in order to perform the required task. Our concept of parameterization, therefore, encompasses both the narrower definition of defining ranges of possible values for key model elements and the broader definition of describing what needs to be included in the model’s design in order for it to function properly.