1.

Record Nr.

UNINA9910777513803321

Autore

MacKenzie Donald A

Titolo

An engine, not a camera : how financial models shape markets / / Donald MacKenzie

Pubbl/distr/stampa

Cambridge, Mass., : MIT Press, ©2006

ISBN

0-262-25004-7

1-282-09767-9

9786612097676

0-262-27880-4

1-4237-7448-5

Descrizione fisica

1 online resource (392 p.)

Collana

Inside technology

Disciplina

332/.01/5195

Soggetti

Capital market - Mathematical models

Derivative securities - Mathematical models

Financial crises - Mathematical models

Financial crises

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references and index.

Nota di contenuto

Acknowledgements; 1 Performing Theory?; 2 Transforming Finance; 3 Theory and Practice; 4 Tests, Anomalies, and Monsters; 5 Pricing Options; 6 Pits, Bodies, and Theorems; 7 The Fall; 8 Arbitrage; 9 Models and Markets; Appendix A An Example of Modigliani and Miller's "Arbitrage Proof" of the Irrelevance of Capital Structure to Total Market Value; Appendix B Lévy Distributions; Appendix C Sprenkle's and Kassouf's Equations for Warrant Prices; Appendix D The Black-Scholes Equation for a European Option on a Non- Dividend-Bearing Stock; Appendix E Pricing Options in a Binomial World

Appendix F Repo, Haircuts, and Reverse RepoAppendix G A Typical Swap-Spread Arbitrage Trade; Appendix H List of Interviewees; Glossary; Notes; Sources of Unpublished Documents; References; Series List; Index

Sommario/riassunto

This pioneering work in the social studies of finance describes how the emergence of modern finance theory has affected financial markets in fundamental ways. Paraphrasing Milton Friedman, the author says that



economic models are an engine of inquiry rather than a camera to reproduce empirical facts.