Journal of the History of Economic Thought

Articles

ECONOPHYSICS: A NEW CHALLENGE FOR FINANCIAL ECONOMICS?

FRANCK JOVANOVIC and CHRISTOPHE SCHINCKUS *

Abstract

Financial economics was born in the 1960s. It took less than two decades for the new discipline’s main theoretical results to become established, creating what is considered to be mainstream financial economics. Less than thirty years later, a new field of research called “econophysics” was created. This field aims to reinvent modern financial theory and, indirectly, financial economics.

This article proposes to study, by an historical analysis, to what extent econophysics today could constitute one of the major theoretical challenges to financial economics. It shows how these two fields have historical similarities, and analyzes how these similarities call the future evolution of financial theory into question.

Footnotes

*  Franck Jovanovic, TELUQ, Montreal, Quebec, Canada. Email: franck.jovanovic@teluq.ca Christophe Schinckus, University of Leicester – Finance, Leicester, UK. Email: cs354@leicester.ac.uk We wish to acknowledge the financial support of the Social Sciences and Humanities Research Council of Canada and the Fonds québécois de recherche sur la société et la culture for this research. We would like to thank the anonymous referees for their helpful comments.