Models and Markets
Models and Markets
This chapter reveals how financial economic theories and models were developed in various research universities and were applied to financial markets across the United States. It also examines how these models were used to implement certain procedures and changes in the financial markets of the country. The chapter finds that in the 1960s and 1970s, financial researchers studied and referred to works of earlier researchers to develop suitable theories and models for the domestic financial markets. Research students from the University of Chicago and the Massachusetts Institute of Technology also played a key role in developing theories and models that significantly influenced market practice within the United States.
Keywords: financial economics, United States, financial market
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