" Once upon a time (not long ago), Econ 101 taught about 'the efficient market hypothesis'. "
At least since 1980 the academia recognized the obvious: if the markets are efficient there is no incentive for traders to be active; thus, relevant information is not assimilated by the markets and should become inefficient (conversely, if the markets are inefficient there is incentive for traders to be active; thus, relevant information is assimilated by the markets and should become efficient). This is known as the Grossman-Stiglitz paradox. On Mon, Jul 22, 2019 at 11:37 AM Raul Miller <[email protected]> wrote: > The financial and actuarial worlds have a lot of people with a variety > of motivations, but generally speaking this sounds like a project > which you would need to dedicate a few decades into, probably picking > up more people for your team as you go. > > That said, it's probably also worth pointing out that the financial > world itself is in the process of changing. Once upon a time (not > long ago), Econ 101 taught about "the efficient market hypothesis". > But that hypothesis turns out to be mathematically implausible for the > general case (there can be specific contexts where it's approximately > true, but those contexts would be restricted artifacts of > regulations). [Other economic concepts -- supply and demand, > bookkeeping, etc. etc. still have validity, but markets tend towards > inefficiency, and that spells opportunity for people who understand > what needs to get done and have the drive to help make it happen.] > > In that context, J can only be a tool. A useful tool, but ultimately > financial people have to be problem solvers -- shipping, > manufacturing, agriculture, forestry, etc. etc. -- finance is sort of > like the nervous system that wires these systems together. > > Anyways.... for your students, I'd start by taking a look at the tasks > assigned to them by other professors, and seeing what J can do to make > the concepts clearer, and take them further. (Personally, I have some > fondness for J's support of linear algebra, though there's plenty of > other supported concepts also. Bayesian statistics obviously. And if > you throw in Jd, you've got support for relational algebra. Etc.) > > But I guess my point is that you've asked a very broad question, and > anything useful is going to have to be quite a bit more specific. > > Thanks, > > -- > Raul > > On Sun, Jul 21, 2019 at 7:52 PM William Szuch <[email protected]> > wrote: > > > > I am trying to introduce J to financial and actuarial students in > Australian > > universities. > > > > Any suggestion most welcome. > > > > > > > > I have been told that this is an uphill battle as Python and R dominate > the > > landscape. > > > > > > > > Also there is a strong focus on data analytics in the actuarial programs > and > > work focus. > > > > > > > > > > > > Bill Szuch > > > > ---------------------------------------------------------------------- > > For information about J forums see http://www.jsoftware.com/forums.htm > ---------------------------------------------------------------------- > For information about J forums see http://www.jsoftware.com/forums.htm > ---------------------------------------------------------------------- For information about J forums see http://www.jsoftware.com/forums.htm
