Abstract
One of the more noteworthy developments in economics over the last twenty years or so is the emergence of equilibrium models of the financial market. Included in this term is the market for financial securities such as stocks, bonds, options and insurance contracts. The chief building block and spur in this evolution has been the economics of uncertainty, which itself is of rather recent origin. The results of this new focus and the activities and synergies it has generated is often broadly referred to as financial economics. It is within this new subfield that various models of the financial market occupy the centre stage.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsBibliography
Allais, M. 1953. L’extension des théories de l’équilibre économique général et du rendement social au cas du risque. Econometrica 21: 269–290.
Arrow, K. 1953. The role of securities in the optimal allocation of risk-bearing. Review of Economic Studies 31: 91–96, 1964.
Borch, K. 1962. Equilibrium in a reinsurance market. Econometrica 30: 424–444.
Borch, K. 1968. The economics of uncertainty. Princeton: Princeton University Press.
Debreu, G. 1959. Theory of value. New York: Wiley.
Hakansson, N. 1977. The superfund: Efficient paths toward efficient capital markets in large and small countries. In Financial decision making under uncertainty, ed. H. Levy and M. Sarnat. New York: Academic Press.
Hakansson, N. 1978. Welfare aspects of options and supershares. Journal of Finance 33(3): 759–776.
Hakansson, N. 1982. Changes in the financial market: Welfare and price effects and the basic theorems of value conservation. Journal of Finance 37(4): 977–1004.
Hart, O. 1974. On the existence of equilibrium in a securities model. Journal of Economic Theory 9(3): 293–311.
Hart, O. 1975. On the optimality of equilibrium when the market structure is incomplete. Journal of Economic Theory 11(3): 418–443.
Lintner, J. 1965. The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets. Review of Economics and Statistics 47: 13–37.
Litzenberger, R., and H. Sosin. 1977. The theory or recapitalizations and the evidence of dual purpose funds. Journal of Finance 32(5): 1433–1455.
Markowitz, H. 1952. Portfolio selection. Journal of Finance 7: 77–91.
Modigliani, F., and M. Miller. 1958. The cost of capital, corporation finance, and the theory of investment. American Economic Review 48: 261–297.
Mossin, J. 1966. Equilibrium in a capital asset market. Econometrica 34(4): 768–783.
Nielsen, N. 1978. On the financing and investment decisions of the firm. Journal of Banking and Finance 2(1): 79–101.
Ross, S. 1976a. Options and efficiency. Quarterly Journal of Economics 90(1): 75–89.
Ross, S. 1976b. The arbitrage theory of capital asset pricing. Journal of Economic Theory 13(3): 341–360.
Rubinstein, M. 1974. An aggregation theorem for securities markets. Journal of Financial Economics 1(3): 225–244.
Sharpe, W. 1963. A simplified model for portfolio analysis. Management Science 9: 277–293.
Sharpe, W. 1964. Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance 19: 425–442.
Sharpe, W. 1967. Linear programming algorithm for mutual fund portfolio selection. Management Science, Series A 13: 499–510.
von Neumann, J., and O. Morgenstern. 1944. Theory of games and economic behavior. Princeton: Princeton University Press.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Hakansson, N.H. (2018). Financial Markets. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_583
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_583
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences