The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Financial Markets

  • Nils H. Hakansson
Reference work entry


One of the more noteworthy developments in economics over the last twenty years or so is the emergence of equilibrium models of the financial market. Included in this term is the market for financial securities such as stocks, bonds, options and insurance contracts. The chief building block and spur in this evolution has been the economics of uncertainty, which itself is of rather recent origin. The results of this new focus and the activities and synergies it has generated is often broadly referred to as financial economics. It is within this new subfield that various models of the financial market occupy the centre stage.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Nils H. Hakansson
    • 1
  1. 1.