Houthakker H.S., Williamson P.J. The Economics of Financial Markets

New York: Oxford University Press, 1996. — 375 p.Does economics have anything useful to say about the financial markets? The fact that most large firms employ sizable staffs of economists. During the last three decades, the Nobel prize in economics has been transformed into a number of eminent scholars. The most illuminating of their contributions were the statement of the Efficient Market. Hypothesis in its various forms, of the Capital Assets Pricing Model, and of options pricing theory. These subjects are taken up in Chapters 5, 6, and 8, respectively. In addition, Chapter 2 draws in part on Irving Fisher's theory of interest rates, Chapter 4 on Markowitz's analysis of the portfolio selection, and Chapter 7 on Tobin ' s comparison of asset values ​​and Porter's ideas on business strategy, while Chapter 10 owes much to Working's insights into futures trading. This academic work has had a significant impact on the actual operation of financial markets. This book is of its own in the undergraduate lecture course entitled "Securities, Options and Futures" that Houthakker taught once a year starting in 1980. Designed as an elective for economics majors, the course consistently attracted a sizable enrollment, which suggests that it filled a need. Its purpose was to make students with a background in microeconomics and macroeconomics-but with only modest knowledge of mathematics-aware of the light. while Chapter 10 owes much to Working's insights into futures trading. This academic work has had a significant impact on the actual operation of financial markets. This book is of its own in the undergraduate lecture course entitled "Securities, Options and Futures" that Houthakker taught once a year starting in 1980. Designed as an elective for economics majors, the course consistently attracted a sizable enrollment, which suggests that it filled a need. Its purpose was to make students with a background in microeconomics and macroeconomics-but with only modest knowledge of mathematics-aware of the light. while Chapter 10 owes much to Working's insights into futures trading. This academic work has had a significant impact on the actual operation of financial markets. This book is of its own in the undergraduate lecture course entitled "Securities, Options and Futures" that Houthakker taught once a year starting in 1980. Designed as an elective for economics majors, the course consistently attracted a sizable enrollment, which suggests that it filled a need. Its purpose was to make students with a background in microeconomics and macroeconomics-but with only modest knowledge of mathematics-aware of the light. This book is of its own in the undergraduate lecture course entitled "Securities, Options and Futures" that Houthakker taught once a year starting in 1980. Designed as an elective for economics majors, the course consistently attracted a sizable enrollment, which suggests that it filled a need. Its purpose was to make students with a background in microeconomics and macroeconomics-but with only modest knowledge of mathematics-aware of the light. This book is of its own in the undergraduate lecture course entitled "Securities, Options and Futures" that Houthakker taught once a year starting in 1980. Designed as an elective for economics majors, the course consistently attracted a sizable enrollment, which suggests that it filled a need. Its purpose was to make students with a background in microeconomics and macroeconomics-but with only modest knowledge of mathematics-aware of the light.