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Encyclopedia of Finance pp 585–590Cite as

Market efficiency hypothesis

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Abstract

Market efficiency is one of the most fundamental research topics in both economics and finance. Since Fama (1970) formally introduced the concept of market efficiency, studies have been developed at length to examine issues regarding the efficiency of various financial markets. In this chapter, we review elements, which are at the heart of market efficiency literature: the statistical efficiency market models, joint hypothesis testing problem, and three categories of testing literature.

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Author information

Authors and Affiliations

  1. University of Southern Mississippi, Hattiesburg, USA

    Melody Lo

Authors
  1. Melody Lo
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Editor information

Editors and Affiliations

  1. Rutgers University, New Brunswick/Piscataway, USA

    Cheng-Few Lee

  2. San Francisco State University, San Francisco, USA

    Alice C. Lee

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© 2006 Springer Science+Business Media, Inc.

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Lo, M. (2006). Market efficiency hypothesis. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_55

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  • DOI: https://doi.org/10.1007/978-0-387-26336-6_55

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-0-387-26284-0

  • Online ISBN: 978-0-387-26336-6

  • eBook Packages: Business and Economics

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