IDEAS home Printed from https://ideas.repec.org/a/taf/jecmet/v21y2014i2p125-138.html
   My bibliography  Save this article

Epistemological foundations for the assessment of risks in banking and finance

Author

Listed:
  • Guillaume Vuillemey

Abstract

This article presents the epistemological and conceptual foundations on which current attempts to model crises and assess financial risks are based. It draws a distinction between two research programs, in Lakatos' sense: on the one hand, crises understood as structural events within a cycle; on the other hand, crises seen as statistical tail events. The methodological, theoretical and practical consequences of such a dichotomy are exposed. A crucial difference lies in the assumptions about change in the causal processes generating economic outcomes, especially asset returns. Furthermore, this article insists on providing conceptual definitions of key terms that have distinct meanings within the two research programs.

Suggested Citation

  • Guillaume Vuillemey, 2014. "Epistemological foundations for the assessment of risks in banking and finance," Journal of Economic Methodology, Taylor & Francis Journals, vol. 21(2), pages 125-138, June.
    • Handle: RePEc:taf:jecmet:v:21:y:2014:i:2:p:125-138
    DOI: 10.1080/1350178X.2014.907438
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1350178X.2014.907438
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1350178X.2014.907438?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ute Schmiel & Hendrik Sander, 2022. "What are markets? Selected market theories under genuine uncertainty in comparison," Journal of Evolutionary Economics, Springer, vol. 32(1), pages 9-33, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jecmet:v:21:y:2014:i:2:p:125-138. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RJEC20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.