A forthcoming book by Harry Markowitz, Techniques of Portfolio Selection, will treat the general problem of finding dominant sets and computing the corresponding opportunity locus, for sets of securities all of which involve risk. Markowitz's main interest is prescription of rules of rational behaviour for investors; the main concern of this paper is the implications for economic theory, mainly comparative statics, that can be derived from assuming that investors do in fact follow such rules.
James TobinRelated topics
book comparative computing dominant follow forthcoming general interest locus opportunity paper portfolio prescription problem risk selection treat RulesRelated quotes
Students using astrophysical textbooks remain essentially ignorant of even the existence of plasma concepts, despite the fact that some of them have been known for half a century. The conclusion is that astrophysics is too important to be left in the hands of astrophysicists who have gotten their main knowledge from these textbooks. Earthbound and space telescope data must be treated by scientists who are familiar with laboratory and magnetospheric physics and circuit theory, and of course with modern plasma theory.
Hannes Alfvén
Mr. Darwin's hypothesis is not, so far as I am aware, inconsistent with any known biological fact; on the contrary, if admitted, the facts of Development, of Comparative Anatomy, of Geographical Distribution, and of Palaeontology, become connected together, and exhibit a meaning such as they never possessed before; and I, for one, am fully convinced that if not precisely true, that hypothesis is as near an approximation to the truth as, for example, the Copernican hypothesis was to the true theory of the planetary motions.
Thomas Henry Huxley
The endeavor of scientific research to see events in their more general connection in order to determine their laws, is a legitimate and useful occupation. Any protest against such efforts, in the name of freefom from restrictive conditions, would be fruitless if science did not naïvely identify the abstractions called rules and laws with the actually efficacious forces, and confuse the probability that B will follow A with the actual effort make B follow A.
Max Horkheimer
The work of the painter, the poet or the musician, like the myths and symbols of the savage, ought to be seen by us, if not as a superior form of knowledge, at least as the most fundamental and the only one really common to us all; scientific thought is merely the sharp point more penetrating because it has been whetted on the stone of fact, but at the cost of some loss of substance and its effectiveness is to be explained by its power to pierce sufficiently deeply for the main body of the tool to follow the head.
Claude Lévi-Strauss
Keynes was a great economist. In every discipline, progress comes from people who make hypotheses, most of which turn out to be wrong, but all of which ultimately point to the right answer. Now Keynes, in The General Theory of Employment, Interest and Money, set forth a hypothesis which was a beautiful one, and it really altered the shape of economics. But it turned out that it was a wrong hypothesis. That doesn't mean that he wasn't a great man!
Milton Friedman