Paper: SSRN 1678414

Abstract

Modern Finance has dominated the area of financial economics for at least four decades. Based on a set of strong but highly unrealistic assumptions its advocate

Complexity vs Empirical Score

  • Math Complexity: 2.0/10
  • Empirical Rigor: 1.0/10
  • Quadrant: Philosophers — conceptual discussion, limited math and data

Why this score: The paper is a conceptual overview comparing theoretical frameworks, with no mathematical derivations or empirical backtesting. It focuses on arguments and assumptions rather than data or implementation.

Research Flowchart

  flowchart TD
  A["Research Goal<br>Compare Modern & Behavioral Finance"] --> B["Methodology<br>Literature Review & Theoretical Analysis"]
  B --> C["Data/Inputs<br>Key Assumptions & Major Arguments"]
  C --> D["Computational Process<br>Critique & Comparison of Frameworks"]
  D --> E["Key Findings<br>MF: Highly unrealistic assumptions<br>BF: Incorporates psychological factors"]