In finance, the Chen model is a mathematical model describing the evolution of interest rates. It is a type of "three-factor model" as it describes interest rate movements as driven by three sources of market risk. It was the first stochastic mean and stochastic volatility model and it was published in 1994 by Lin Chen, PhD from Harvard, former economist of Federal Reserve Board, former lecturer/professor at Beijing Institute of Technology, American University of Beirut, Yonsei University of Korea, Nanyang Technological University of Singapore, and SunYetSan University of China.