Empirically Grounded Theory

  • Frederick Betz
Part of the SpringerBriefs in Economics book series (BRIEFSECONOMICS)


Suppose financial markets are not empirically “perfect.” Further suppose that “regulation” of financial markets is required for any financial market to operate toward the economic ideal of market perfection. And suppose the practice of regulation should be based upon a theory of regulation (regulatory principles) which can be empirically shown to have worked in financial history. Then what kind of regulatory theory could this be and how constructed and how verified? The goal is a cross-disciplinary theory of regulation—which can prescriptively direct financial markets toward the ideal of economic perfection. The economic ideal is for any financial market to operate with transparent financial information, rational financial behavior, effective financial performance, and integrity in economic risk. And this is a traditional idea in banking regulation.


Financial Market Bank Risk Bank Debt Societal Event Bond Holding 
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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • Frederick Betz
    • 1
  1. 1.Portland State UniversityPortlandUSA

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