The Theory

Abstract

Marschak brought not just a single new idea to a new world — he brought forth a number of new approaches to vexing problems known or not yet understood, and defined a lifelong research agenda for himself that would leave an indelible mark on our understanding of finance. A much more nuanced approach to markets, with explicit recognition of the ways in which one market affects another, became a hallmark of his work. His strong mathematical skills also allowed him to contribute to a movement that began in the late 1920s.