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Irving Fisher and statistical approaches to risk
Author(s) -
Stabile Donald R,
Putnam Bluford H
Publication year - 2002
Publication title -
review of financial economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.347
H-Index - 41
eISSN - 1873-5924
pISSN - 1058-3300
DOI - 10.1016/s1058-3300(02)00070-8
Subject(s) - economics , econometrics , bayesian probability , investment (military) , actuarial science , statistical analysis , financial economics , positive economics , mathematical economics , statistics , mathematics , political science , law , politics
Irving Fisher has been recognized as one of the most prominent economists in the US in the first half of the 20th century. His contribution to financial economics has not been well recognized, however. This article describes Fisher's pioneering efforts to apply statistical methods to the analysis of investment risk. In addition, it will argue that Fisher's statistical analysis of risk had a Bayesian philosophy of probability theory. Finally, the highs and lows of Fisher's investment strategy for the 1920s and 1930s will be discussed.