Black-Shoes-Merton Model and Neural Networks in River Level Prediction: Case Study on La Leche River - Peru

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The rugged relief of Peru determines a particular hydrological regime. This geographical context includes our region, which is also affected by meteorological phenomena, e.g., El Niño and La Niña, that occur unpredictably and whose effects we feel with heavy rains and floods in the north of Peru. For that reason, the capability of being able to forecast river levels, in particular the river La Leche, is essential. For this purpose, we use the Black-Sholes-Merton stochastic differential equation of the river level and other parameters achieved from meteorological stations within the area of influence of the La Leche river basin as inputs to an LSTM Neural Network, which was trained with downloaded data and can forecast the river level 6, 12, 18, and 24 h in advance. The performance tests of the obtained neural networks demonstrated a high adaptation of the solution to the hydrological model since the NSE is very close to unity. Besides that, the average error is minimal, RMSE is of the order of 0.002, and the absolute error is of the order of 0.007.

Original languageEnglish
Title of host publicationProceedings of the 7th Brazilian Technology Symposium, BTSym 2021 - Emerging Trends in Human Smart and Sustainable Future of Cities Volume 1
EditorsYuzo Iano, Osamu Saotome, Guillermo Leopoldo Kemper Vásquez, Claudia Cotrim Pezzuto, Rangel Arthur, Gabriel Gomes de Oliveira
PublisherSpringer Science and Business Media Deutschland GmbH
Number of pages8
ISBN (Print)9783031044342
StatePublished - 2023
Event7th Brazilian Technology Symposium, BTSym 2021 - Virtual, Online
Duration: 8 Nov 202110 Nov 2021

Publication series

NameSmart Innovation, Systems and Technologies
Volume207 SIST
ISSN (Print)2190-3018
ISSN (Electronic)2190-3026


Conference7th Brazilian Technology Symposium, BTSym 2021
CityVirtual, Online

Bibliographical note

Publisher Copyright:
© 2023, The Author(s), under exclusive license to Springer Nature Switzerland AG.


  • Black- sholes-merton
  • Neural network
  • River level
  • Weather data


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