Market crashes as critical phenomena? Explanation, idealization, and universality in econophysics.

We study the Johansen-Ledoit-Sornette (JLS) model of financial market crashes (Johansen et al. in Int J Theor Appl Financ 3(2):219-255, 2000). On our view, the JLS model is a curious case from the perspective of the recent philosophy of science literature, as it is naturally construed as a “minimal...

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Detalles Bibliográficos
Publicado en:Synthese Vol. 195; no. 10; pp. 4477 - 4506
Autores principales: Jhun, Jennifer, Palacios, Patricia, Weatherall, James Owen
Formato: Artículo
Publicado: Springer Nature Oct2018
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Acceso en línea:Ver este registro en EBSCOhost
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Sumario:We study the Johansen-Ledoit-Sornette (JLS) model of financial market crashes (Johansen et al. in Int J Theor Appl Financ 3(2):219-255, 2000). On our view, the JLS model is a curious case from the perspective of the recent philosophy of science literature, as it is naturally construed as a “minimal model” in the sense of Batterman and Rice (Philos Sci 81(3):349-376, 2014) that nonetheless provides a causal explanation of market crashes, in the sense of Woodward’s interventionist account of causation (Woodward in Making things happen: a theory of causal explanation. Oxford University Press, Oxford, 2003).