Title: An engine, not a camera : how financial models shape markets /
Authors: MacKenzie, Donald A.
Publisher: MIT Press,
Year: 2006
Subjects: Capital market Mathematical models; Derivative securities Mathematical models.; Financial crises Mathematical models.; Financial crises Case studies.
Abstract: 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.
Contents: 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.