Vol 1, No 4 (2013)

Is Financial Theory so Different From Statistics and Thermodynamics: Comment

Amaresh Das

Abstract

The comment deals, very briefly with the difficult often unanswered question whether statistics might eventually provide a working model for financial behavior. The ‘laws of nature’ are based on local invariance principles which are independent of initial conditions like absolute time, and which cannot be said about financial markets. The dominant ‘equilibrium principle’ of the market is only a hope, not a reality: It lacks proper empirical underpinning.

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Keywords

Pair correlation function; Lognormal distribution; Exponential distribution; Central Limit Theorem

Publication information

Volume 1, Issue 4
Year of Publication: 2013
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

Das, A. (2013). Is Financial Theory so Different From Statistics and Thermodynamics: Comment. Journal of Applied Economics and Business, Vol 1, No. 4, 17-24.