Market Efficient Cycle Theory: Construction, Empirical Study, and Application
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In this groundbreaking book, Prof. Song embarks on a transformative journey to challenge and reshape the foundational principles of modern Western finance. With over a decade of dedicated research, he critically examines the existing theoretical landscape, exposing contradictions and divergences that have long hindered the development of financial theory. He argues that the stagnation in modern Western financial theory, rooted in the overthrow of the rational person hypothesis, demands a fresh perspective.
The central theme revolves around his innovative theories-- the Market Efficient Cycle and Average Rationality. By redefining the efficient market hypothesis and introducing the concept of an effective cycle, he addresses long-standing controversies and disagreements within financial theory. His notion of " average rationality" transcends the traditional dichotomy of rational and bounded rational actors, providing a nuanced understanding of investor behavior. This book offers insights into the price discovery function of the capital market and implications for government regulation. It is a powerful tool for understanding macroeconomic trends and systemic financial risks and formulating long-term investment strategies.Song Yuchen, born in 1965, is a distinguished professor of finance and a recognized doctoral supervisor focusing on quantitative economics. He holds a prestigious position in the Department of Applied Finance at the School of Business and Management, Jilin University. Additionally, he is honored as a leading professor under the esteemed " Kuang Yaming Scholar Awards" at Jilin University, a recognition that underscores his substantial contributions to the field. He has dedicated himself to the rigorous exploration of financial markets, investment theory, and asset pricing.
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