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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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
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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          Jhun, Jennifer
          Palacios, Patricia
          Weatherall, James Owen
        affil:
          Department of Philosophy, Lake Forest College, Lake Forest, IL, USA
          Munich Center for Mathematical Philosophy, Ludwig-Maximilians Universität München, Munich, Germany
          Department of Logic and Philosophy of Science, University of California, Irvine, Irvine, CA, USA
      su:
        Financial crises
        Néron models
        Econophysics
        Universalism (Philosophy)
        Explanation
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          Financial crises
          Néron models
          Econophysics
          Universalism (Philosophy)
          Explanation
      keyword:
        Infinite idealization
        Johansen-Ledoit-Sornette model
        Minimal models
        Renormalization group
        Universality
      ab: 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).
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