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The search for the pioneers of financial economics contained in this volume places the origins of financial economics well outside the conventional boundaries of the history of economic thought. Under the editorship of Geoffrey Poitras, a leading authority on the history of financial economics, these specially commissioned essays comprise contributions on the seventeenth to the early twentieth centuries, and include the work of both well-known and less familiar historical figures. The subjects studied display a variety of philosophical foundations and include: Jacob Bernoulli, Joseph de la Vega, Edmond Halley, Abraham de Moivre, Duvillard de Durand, Jules Regnault, Henri Lefevre, Louis Bachelier, and Vincenz Bronzin. Life annuity valuation, the modified internal rate of return, the nineteenth-century science of financial investments, and the early development of option pricing models are just some of the issues dealt with by these early thinkers and explored in depth within these pages. An outstanding volume of original analysis, Pioneers of Financial Economics is an essential reference source of seminal contributions on the early history of financial economics.
Edited by Geoffrey Poitras, Professor of Finance, Simon Fraser University, Canada
Contents:IntroductionGeoffrey PoitrasPART I: THE HISTORICAL AND PHILOSOPHICAL BACKGROUND1. Commercial Arithmetic, Theology and the Intellectual Foundations of Jacob Bernoulli’s Art of ConjecturingEdith Dudley Sylla2. Issac Le Maire and the Early Trading in Dutch East India Company SharesJ.G. van Dillen, Geoffrey Poitras and Asha Majithia3. Joseph de la Vega and the Confusion de ConfusionesJosé Luís CardosoPART II: EIGHTEENTH-CENTURY CONTRIBUTIONS4. Life Annuity Valuation: From de Witt and Halley to de Moivre and SimpsonGeoffrey Poitras5. John Law: Financial InnovatorAntoin E. Murphy6. Duvillard’s Researche sur les Rentes (1787) and the Modified Internal Rate of Return: A Comparative AnalysisYuri Biondi, translated by Jeff d’Avignon and Geoffrey PoitrasPART III: THE NINETEENTH-CENTURY ‘SCIENCE OF FINANCIAL INVESTMENTS’7. Rational Investors, Informative Prices: The Emergence of the ‘Science of Financial Investments’ and the Random Walk HypothesisAlex Preda8. Economic Instruments and Theory in the Construction of Henri Lefèvre’s ‘Science of the Stock Market’Franck Jovanovic9. A Nineteenth-Century Random Walk: Jules Regnault and the Origins of Scientific Financial EconomicsFranck JovanovicPART IV: EARLY TWENTIETH-CENTURY CONTRIBUTIONS10. Louis BachelierRobert W. Dimand and Hichem Ben-El Mechaiekh11. Vincenz Bronzin’s Option Pricing Theory: Contents, Contribution and BackgroundHeinz Zimmermann and Wolfgang HafnerIndex