Advanced Financial Theory (Frontiers of Modern Economics Series)

Author: Yang Yunhong
Publisher:
Publish Date: 2001-03-19
Features: This book is an advanced tutorial on financial theory, aimed at graduate students in economics and management as well as researchers in related fields. It primarily introduces the development of financial theory from the early 1980s to the late 1990s. In this tutorial, we use mathematical theories such as stochastic analysis and dynamic programming to analyze asset pricing and consumption choice theory. The book is divided into two parts, with a total of nine chapters. Part I is on discrete-time models. Discrete-time models are intuitive, straightforward, and computationally convenient, while continuous-time models are easier to handle and can provide more precise theoretical solutions and more refined empirical assumptions. We describe the same content separately using both discrete-time and continuous-time models, allowing readers to compare the advantages and disadvantages of each. Chapters 7 to 9 of the book are composed of the author's doctoral dissertation, which has already been published in top economics journals both domestically and internationally and represents cutting-edge content in financial theory.