| Authors |
Koundouri, P., Kourogenis, N. and Pittis, N. |
| Title |
Statistical Modeling of Stock Returns: Explanatory or Descriptive? A Historical Survey with Some Methodological Reflections. |
| Abstract |
The purpose of this paper is twofold: first, to survey the statistical models of stock returns that have been suggested in the finance literature since the middle of the twentieth century; second, to examine under the prism of the contemporary philosophy of science, which of the aforementioned models can be classified as explanatory and which as descriptive. Special emphasis is paid on tracing the interactions between the
motivation for the birth of statistical models of stock returns in any given historical period and the concurrent changes of the theoretical paradigm in financial economics, as well as those of probability theory. |
| Creation Date |
2014-09-18 |
| Keywords |
Stock Returns, Statistical Model, Explanatory Model, Scientific Explanation, Market Efficiency, Brownian Motion. |
| Classification JEL |
C58, C51, G17 |
| File |
Statistical.Modeling.of.Stock.Returns.pdf (511338 bytes) |
| File-Function |
First version |
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Copyright © 2009 [D.I.E.S.S. A.U.E.B.]. All rights reserved.
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