Report Detail Summary

Financial Economics Ruminations

May 21, 2019

Finance and economic theorists commonly make simplifying assumptions in the process of developing their theories and interpretations about the way the world works, and to forecast how economic agents would react to changes in the economic environment. In the next few paragraphs we examine how some of the conclusions yielded by different theories are dependent on the simplifying assumptions made by the theory developers. If they are, then we should be suspect of the conclusions and insights yielded by the analysis. On the other hand, if the results are robust enough to be unaffected by the simplifying assumptions, then we should give them higher weight than the assumption dependent conclusions. Ultimately the usefulness of the analysis depends on the results produced by the approaches using the simplifying assumptions.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format

Copyright © 2018 La Jolla Economics All Rights Reserved
Legal Disclaimer - Privacy Policy - Contact Information - Login



The ValueTiming™ strategy is based on the assumption that politicians and policymakers have particular views of the world, and that they will in general adopt policy measures that are consistent with these views.


Economic Disturbances and Equilibrium in an Integrated Global Economy

Cocktail Economics: Discovering Investment Truths from Everyday Conversations

Understanding Asset Allocation: An Intuitive Approach to Maximizing Your Portfolio