1 9 O ct 2 01 2 Ethics and Finance : the role of mathematics ∗ Timothy
نویسنده
چکیده
This paper presents the contemporary Fundamental Theorem of Asset Pricing as being equivalent to approaches to pricing that emerged before 1700 in the context of Virtue Ethics. This is done by considering the history of science and mathematics in the thirteenth and seventeenth century. An explanation as to why these approaches to pricing were forgotten between 1700 and 2000 is given, along with some of the implications on economics of viewing the Fundamental Theorem as a product of Virtue Ethics. The Fundamental Theorem was developed in mathematics to establish a ‘theory’ that underpinned the Black-Scholes-Merton approach to pricing derivatives. In doing this, the Fundamental Theorem unified a number of different approaches in financial economics, this strengthened the status of neo-classical economics based on Consequentialist Ethics. We present an alternative to this narrative.
منابع مشابه
ar X iv : 1 41 0 . 79 58 v 1 [ as tr o - ph . C O ] 2 9 O ct 2 01 4 Observing the Inflationary Reheating
Jérôme Martin, ∗ Christophe Ringeval, † and Vincent Vennin ‡ Institut d’Astrophysique de Paris, UMR 7095-CNRS, Université Pierre et Marie Curie, 98 bis boulevard Arago, 75014 Paris, France Centre for Cosmology, Particle Physics and Phenomenology, Institute of Mathematics and Physics, Louvain University, 2 Chemin du Cyclotron, 1348 Louvain-la-Neuve, Belgium Institute of Cosmology & Gravitation, ...
متن کاملar X iv : h ep - p h / 01 06 32 4 v 3 1 5 O ct 2 00 1 Anderson Theorem for Color Superconductor
Ginzburg-Landau functional is derived for a system possessing both chiral and diquark condensates. Anderson theorem for such a system is formulated and proved.
متن کاملar X iv : h ep - l at / 0 61 01 09 v 1 1 9 O ct 2 00 6 Twisted mass QCD for weak matrix elements ∗
I report on the application of tmQCD techniques to the computation of hadronic matrix elements of four-fermion operators. Emphasis is put on the computation of BK in quenched QCD performed by the ALPHA Collaboration. The extension of tmQCD strategies to the study of neutral Bmeson mixing is briefly discussed. Finally, some remarks are made concerning proposals to apply tmQCD to the computation ...
متن کاملMonotonicity condition for the θ-scheme for diffusion equations
We derive the necessary and sufficient condition for the L∞−monotonicity of finite difference θ-scheme for a diffusion equation. We confirm that the discretization ratio ∆t = O(∆x) is necessary for the monotonicity except for the implicit scheme. In case of the heat equation, we get an explicit formula, which is weaker than the classical CFL condition. Key-words: Theta-scheme, monotonicity. ∗ W...
متن کامل