A Flaw in the Model… That Defines How the World Works

A Flaw in the Model… That Defines How the World Works

The authors of this paper claim that modeling financial markets based on probability theory is a severe systematic mistake that led to the global financial crisis. They argue that the crisis was not just the result of risk managers using outdated f...

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Bibliographic Details
Main Authors: Bieta, Volker, Milde, Hellmuth, Weber, Nadine
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
ACCOUNTING
AGENCY PROBLEMS
AMOUNT OF CAPITAL
ASYMMETRIES OF INFORMATION
BANKING INDUSTRY
BANKING SECTOR
BENEFICIARY
CASH FLOW
CASH FLOWS
COLLATERAL
COLLATERALS
CONFLICTS OF INTEREST
CORPORATE FINANCE
CREDIT CONTRACT
CREDITOR
DEBT
DEBT FINANCING
DEBTOR
DECISION MAKING
DERIVATIVE
DERIVATIVES
ECONOMICS
EFFICIENT MARKET
EFFICIENT OUTCOMES
EQUITY FINANCING
FEDERAL REGULATORS
FEDERAL RESERVE
FEDERAL RESERVE SYSTEM
FINANCIAL ASSET
FINANCIAL ASSETS
FINANCIAL CRISIS
FINANCIAL DATA
FINANCIAL INSTRUMENTS
FINANCIAL MARKET
FINANCIAL MARKETS
FREE MARKETS
FUTURE CASH FLOWS
GAME THEORY
GOVERNMENT REFORM
HIGH INTEREST RATE
INFORMATION ASYMMETRY
INFORMATIONAL ASYMMETRY
INTEREST RATE
INTEREST RATES
INTERNATIONAL BANK
LOW INTEREST RATE
MARKET PARTICIPANT
MARKET PARTICIPANTS
MARKET PRICES
MATURITY
NASH EQUILIBRIUM
PERFECT COMPETITION
PERFECT MARKETS
PORTFOLIO
PRICE TAKERS
RANDOM WALK
REAL ESTATE
RESOURCE MOBILIZATION
RISK NEUTRAL
STATISTICAL DATA
SUBVENTIONS
WEALTH
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101208092950
http://hdl.handle.net/10986/3980

Internet

http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101208092950
http://hdl.handle.net/10986/3980

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